This integrated framework is a cornerstone of our monetary policy strategy and guides the preparation of each monetary policy meeting, especially in the quarterly meetings in which new staff macroeconomic projections are presented together with comprehensive reports on monetary and financial developments.
The over-riding focus of this analytical work is to make sure that monetary policy is calibrated to counter the cyclical forces that threaten the timely delivery of our two per cent inflation target. Let me highlight some of the major open questions about current cyclical conditions.