With the current demand side inflationary pressures weak at the moment, it is more appropriate that monetary policy remain accommodative to support some growth in the economy while at the same time vigilant on the potential second-round impact on inflation.
Inflation is forecast to subside to 7 percent by the end of this year and further to 4.5 percent by the end of next year. b. On to core inflation – in principle monetary policy should only respond to persistent price movements.