Our core inflation measure is likely to decline somewhat further in the next few months. And we see the trend of inflation remaining below the 2 per cent target for some time. As I’ve said, part of this lower trend in inflation is a result of the slack in the economy that has opened up in 2003.
In particular, I want to underscore the need to enhance data quality, harmonize regulatory and reporting practices, and building adequate capacity among the Regulators. This requires moving swiftly to develop SMART – Standardized, Measurable, Actionable, Reliable and Transparent Regulatory and Supervisory Frameworks – surveillance supervisory approaches, and assessment tools.