Then I will take a step back and look at where interest rates may be going two or three years into the future and beyond. I will consider the question of where interest rates are likely to settle once inflation has normalized, and whether we may be entering a new environment of higher interest rates.
On the domestic side, expansion of private consumption and investment should benefit, in particular, from ongoing employment growth and higher rates of capacity utilisation. Domestic demand is also supported by high business and consumer confidence.