(a)  Accelerated economic growth  From a low of 1.8 percent GDP growth recorded in 2000-01 the growth rate picked up gradually to 5.5 percent in 2002-03, 6.4 percent in 2003/04 and most likely to reach 7.5 percent this year. Therefore the key is to sustain this high rate of economic growth over the next ten years.
With the economy projected to continue to operate near capacity, and with inflation expectations firmly anchored, inflation is expected to return to 2 per cent by the end of 2006. To support aggregate demand, the Bank has held the target for the overnight rate unchanged at 2½ per cent since October 2004.