The Board is strongly committed to making sure we get there and continuing to deliver an average rate of inflation of between 2 and 3 per cent. It is highly unlikely that we will be contemplating higher interest rates until we are confident that inflation will return to around the midpoint of the target range. Thank you for listening.
A key reason for the change in attitude today is an increased confidence in markets. Certainly, at central banks, we are more confident than we were in the 1960s of the ability of financial markets to absorb changes in interest rates. At the same time, we have accumulated strong evidence to support the view that market mechanisms transmit monetary policy actions effectively.