Let me begin as usual with a few remarks around the issues that were most important to the Governing Council’s deliberations. At the global level, 2015 was a little disappointing as the world dealt with diverging economic prospects and shifting terms of trade, but we expect gradual strengthening to resume in 2016.
There has been considerable attention paid to recent developments in China, and this has added to volatility in global financial and commodity markets. However, it was Governing Council’s judgment that China will remain on its transition to a more balanced and sustainable growth path, from around 7 per cent annual growth to around 6 per cent.