On Tuesday, the Bank left its key policy rate unchanged at 4 1/4 per cent. The current level of the policy interest rate is judged, at this time, to be consistent with achieving the inflation target over the medium term. BIS Review 40/2007  1
In any case, a lagged transmission of pipeline pressure up the pricing chain would be in line with past observations. Similarly, the GDP deflator, the broadest measure of domestic price pressures and one closely linked with developments in underlying inflation, does not yet provide evidence of strengthening.