If we tried to target inflation too precisely we could have "instrument instability;" in other words, we would be adjusting our policy interest rate sharply and frequently, which would lead to greater instability in the economy. Further, measured inflation itself can be volatile as specific prices adjust.
Ladies and Gentlemen: It is now my honor and privilege to declare this conference with a very enviable theme officially open and to wish you fruitful deliberations. Thank you  BIS central bankers’ speeches  3