To enhance our anti-inflation signal and help bring inflation toward a target-consistent path over the medium term, we followed this up with another 25-bps hike in June, and a stronger 50-bps hike earlier this month.
These monetary responses were necessary to help rein in the public’s inflation expectations and prevent sustained supply-side pressures from giving rise to further second-round effects, even as we continue to expect average inflation to ease to within the inflation target of 2–4 percent in 2019.