(iii)  no signs of excessive growth in demand, with domestic final demand increasing only at a seasonally adjusted and annualised rate of 2½% and a surplus on the current account of the balance of payments in the second quarter of 2000;  (iv)  a sluggish growth in money supply of 8.6% over the 12 months to August 2000;  (v)  a low year-on-year rate of increase in total domestic bank credit extension of 7.1% in August 2000 and no signs that consumers have become willing to borrow excessively;  (vi)  continued prudent fiscal policies with government carefully monitoring expenditure; and  (vii)  signs that the rate of increase in food prices seems to be levelling off.
All these factors indicate that the inflation target of the authorities will be attained in 2002. The Reserve Bank will nevertheless continue to carefully monitor underlying economic developments, and will not hesitate to take the necessary steps if changed circumstances do indicate a danger that the inflation targets may not be met.