On the other hand, my view is much more cautious than the baseline scenario: the year-on-year rate of change in the CPI (all items less fresh food) will likely remain well below 2 percent throughout the projection period through fiscal 2018.
I therefore have been casting a dissenting vote on the description on the price outlook in the Statement on Monetary Policy and the Outlook Report and submitting a proposal to change the description at MPMs. I will explain what lies behind the difference between the Bank’s baseline scenario and my view. The first is the difference in the outlook for the output gap.