Our objective is to look past the immediate supply shock, focus on the period after it has subsided, and ensure inflation stabilises at that point. I will discuss what factors we consider in pursuit of that goal. Page 1 of 8  Second, we are starting from a point of very low interest rates.
During the onset of the COVID-19 pandemic, we cut the repo rate to a record low of 3.5%. This was the right thing to do at the time, but rates could not stay that low forever. Economic conditions have changed since 2020.