So the Bank will lower interest rates to stimulate the economy, absorb economic slack, and return inflation to the target. By working in a symmetrical way in response to surprises in demand, our inflation-targeting system helps to smooth the peaks and valleys of the business cycle. This promotes sound, and generally less variable, economic growth.
Loi M Bakani: Corporate governance Speech by Mr Loi M Bakani, Governor of the Bank of Papua New Guinea, at the PNG Institute of Directors Workshop, Port Moresby, 16–17 July 2012.