Conversely, the best way the monetary authority can support growth over the medium term is to anchor inflation at low levels so that policy rates can also be low. We can never abandon inflation to focus on growth, nor do we focus on inflation to the exclusion of growth.
The extended glide path over which we are bringing inflation in check appropriately balances inflation and growth. The statement “Inflation is low, you can now turn to stimulating growth” also perhaps reflects a misunderstanding of how central banking works. Monetary policy works with a lag of 3 to 4 quarters.