The Review should give serious consideration to adding such an instrument to the toolkit. Governance 4/7  BIS central bankers' speeches  The current macro-prudential MoU gives decision making powers to the Governor, but commits the Reserve Bank to prior consultation with the Minister and Treasury. The development of any new instruments is undertaken in consultation with the Treasury and also includes public consultation.
As for the current rate of inflation, it is worth noting that the euro area is by no means the only developed economy exhibiting robust output growth with inflation rates below historical experience. I do not have time today to do justice to all the various explanations put forward by economists. In truth, I’m not particularly persuaded by any of them.