That does not mean, of course, that we will always hit the target, any more than we always hit 0 to 2 percent. But it does mean that we will be constantly implementing monetary policy with the intention of having inflation as defined around the middle part of the target.
If we do this, the number of occasions on which we miss the target should be minimised. Indeed, given the wider target range, there should be fewer breaches than in the past. Inflation and growth expectations And this leads naturally into the second major theme of my address today, about New Zealanders’ expectations about inflation and growth.