That which exists, however, suggests implausibly high estimates of near-rational behaviour when inflation is at 3 per cent.32 In summary, there is little substantive evidence to suggest that downward nominal wage rigidity or near-rationality in wage-setting impedes appropriate adjustment at our currently targeted inflation rate of 2 per cent.
But equally, there is little substantive evidence to suggest that a target lower than 2 per cent would lead to a measurable improvement in economic behaviour. Thus, because inflation expectations have become well anchored around 2 per cent, maintaining the 2 per cent target was judged to be appropriate.33  4.