It is important that, as the forces retraining inflation dissipate or reverse, that this upward pressure on inflation is not reinforced by inflationary pressures generated from very high utilization rates. The key to sustaining the best possible performance going forward is making the transition from the current state where performance is exceptional but unsustainable to the best possible sustainable state.
That will require a slowdown in growth, preferably in the near term. Asia may accomplish this, in which case it would substitute for monetary tightening that in my judgment would otherwise be required. BIS Review 33/1998  ˝