Secondly, whether the slightly wider target band enables the economy to operate with slightly less central bank activism depends heavily on how the change affects the expectations which people have of future inflation.
A system of identifying Red Flagged Accounts based on Early Warning Signals has been put in place. A red flagged account is one where a suspicion of fraudulent activity is thrown up by the presence of one or more Early Warning signals. The presence of these signals should trigger a detailed investigation into the RFA. 27.