The value of world exports of goods and services relative to world GDP has increased by over ten percentage points in the last fifteen years or so, rising from 19% in 1990 to 30% in 2006.
With the economy projected to continue to operate near capacity, and with inflation expectations firmly anchored, inflation is expected to return to 2 per cent by the end of 2006. To support aggregate demand, the Bank has held the target for the overnight rate unchanged at 2½ per cent since October 2004.