But, now policy makers around the globe seem to understand that recipes vary from one case to the other in this complex scenario. This progress is, obviously, welcomed. Especially for us, emerging markets’ policy makers, as we have to catch up with growth and macroeconomic stability, deal with the tensions derived from buoyant economies and, most importantly, build credible institutions.
When the previous Committee met in February, underlying inflation in Australia had just reached the midpoint of the 2 to 3 per cent target range for the first time in many years. Seven months on, we are in a very different position. Inflation has very quickly gone from being too low, to being too high.