It appears that the slowdown in our economic activity resulted in a trough-to-peak rise in unemployment from 6 to 7 per cent, and that half of the rise has already been whittled away so far in 2002.
But, on the other hand, in setting the monetary policy response we need to keep basing our decisions on the latest evidence and factor in downside risks to the economic outlook. Policy normalisation, transmission lags and global spillovers In recent months, the public debate has stressed the risks of doing too little to curb inflation, since this would require a more painful future adjustment.