Although inflation is not expected to breach the upper end of the target range over the forecast horizon, as  Page 10 of 12  indicated, the risks to the outlook are currently assessed to be skewed to the upside, at a time when imminent key event risks contribute to an environment of heightened uncertainty.
In light of the growing fiscal risks and increased domestic financial market volatility, the MPC has to be cognisant of the possibility that the inflation outlook could deteriorate further.