As indicated in the statement issued after last week's meeting of the MPC, there are now signs that the inflationary pressures are beginning to abate and that the outlook for inflation is improving, though there is little room for complacency given the considerable risks we still face.
But to return to my initial impressions, what is particularly encouraging, I believe, is that the coherent and responsible policy framework provided by inflation-targeting has demonstrated its ability to address the shocks in a steady and considered manner and, in doing so, has helped considerably to maintain confidence in the economy.