But flexibility does not mean ignoring sustained breaches of the target. With inflation expected to be above 6% for about a year, and given that that the exceptional period of ultra-low world rates is ineluctably drawing to a close, the Reserve Bank has commenced a monetary policy tightening cycle, starting with a 50-basis point increase in January.
To sum up. The role of trust in finance is the same as the role of trust in a good society in general. It may not be enough to say that “all you need is trust”. You also need trustworthy institutions. 6  BIS central bankers’ speeches