A self-sustaining, long-lasting economic recovery driven by consumption is likely to exert upward pressure on prices for a wider range of goods and services. Medium- to long-term inflation expectations are likely to rise accordingly. II. Monetary policy  A.
Framework for the conduct of monetary policy  In January 2013, the Bank set the “price stability target” at 2 percent in terms of the year-onyear inflation rate of the CPI, and made a clear commitment to achieving this target at the earliest possible time.