For the Reserve Bank, our financial inclusion journey really began in 2009 with the establishment of a new group within the Bank to provide more focus on financial systems development.
This confidence allows households and firms to make longer-term plans with greater confidence, aligning their savings, investment and spending decisions with a common inflation-control objective. These actions collectively serve to make the inflation target self-reinforcing. They also give the Bank greater latitude to respond aggressively to economic shocks without fear of dislodging longer-term inflation expectations.