Furthermore, we have disclosed the amount of inflation that members of the Policy Board understand, when conducting monetary policy, as being consistent with price stability over the medium to long term. This is released as the members' "understanding of medium- to long-term price stability."
Expressed in terms of the rate of year-on-year change in the CPI, this "understanding" takes the form of a range, between around 0 and 2 percent, with most members' median figures falling on one side or the other of 1 percent. It is this understanding of price stability that members have in mind when making monetary policy decisions.