That projection takes into account all the information available to the Bank at that time - the official statistics covering GDP, prices, wages, employment, imports, exports, and all the rest; the data collected by the Bank itself on the money and credit aggregates, and the path of interest and exchange rates; the survey data covering business and consumer confidence; the views expressed to us, formally and informally, about individual businesses and the economy; and much more.
At the end of that process, we reach a view on how firm monetary conditions need to be to keep inflation moving towards the middle part of the 0 to 3 percent inflation target we have agreed with Government. BIS Review 78/1997  -5-  But of course neither we nor any other central bank can control the mix of monetary conditions.