•  The Bank expects inflation to return to the 2 per cent target in two years or so, as the effects of retail competition dissipate and excess capacity is absorbed.
Evidence seems to suggest that even when, in some jurisdictions, the regulatory regime was relaxed and full access to the domestic market was available to the non-residents, the NDF market continued to be significant, presumably due to the fact that it afforded the interested nonresidents ease of transaction and a familiar market.