As inflation targeting became more formalised, we tended to implement monetary policy by making a careful assessment of all the factors relevant to inflationary pressures, and then working out some internal ‘comfort zones’ for the key financial prices. These were not targets in the sense that we were totally dedicated to maintaining interest or exchange rates within these ranges.
They relate mainly to the potential for a stronger impact on the real economy of the turmoil in financial markets, as well as to concerns about the emergence and intensification of protectionist pressures and to possible adverse developments in the world economy stemming from a disorderly correction of global imbalances.