This is the level of the policy rate that − if reached at the end of a short normalisation phase and then held constant − stabilises inflation at target by the end of the policy-relevant horizon in the absence of new shocks.
Meanwhile, the fiscal positions of the National Government and the entire public sector are expected to continue to improve, taking off from their performance in 2007. Finally, we expect the BOP to continue to be in surplus although at a level that is smaller compared to the previous year.