  Core inflation is forecast to remain around 2 per cent over the projection horizon as the economy operates near its production potential, growth in labour compensation stays moderate and inflation expectations remain well anchored.
5 Ball, L., Mankiw, N. G. and R. Reis, (2005), “Monetary Policy for Inattentive Economies”, Journal of Monetary  Economics, 52, 703–725. 6 Mankiw, N. G. and R. Reis, (2007), “Sticky Information in General Equilibrium”, Journal of the European  Economic Association, 5, 603–613, and Mankiw, N. G. and R. Reis, (2006), “Pervasive Stickiness”, American Economic Review, 96, 164–169.