Of course, we have been immeasurably helped in doing this by the fact that inflation expectations have become more firmly anchored on the target. Were inflation expectations to become dislodged, we would be obliged to return to a stricter and more vigorous pursuit of the inflation target, even at the expense of some short-term output volatility. Single decision-maker or committee?
In the New Zealand central bank, all important decisions are vested in the Governor, not in the Monetary Policy Committee or in the Board, even though we have both. We are by no means unique in this structure - laws in both Canada and Israel vest similar powers in the Governor. But the pattern is unusual internationally.