The flexibility of the target, and its forward-looking focus, allowed the assessment of whether the inflation target was at risk in the medium term sense to determine the appropriate policy response. That episode went a long way to enhancing the credibility of the framework with wage and price setters as well as with financial markets.
Our discussions with APRA and other agencies on these matters are ongoing, and there will be more to say about them in due course. For now, my colleague and I will be happy to take any questions that you might have. BIS central bankers’ speeches  3