This will by no means be an easy balance to strike. But if, by restraining demand for a while, we can secure a gradual reduction in inflation over the period ahead, then an important foundation of Australia’s good macroeconomic performance over the past decade and a half will remain in place.
That, in turn, will offer the prospect of good sustainable growth into the next decade. That is the goal of monetary policy. My colleagues and I are here to respond to your questions. 4  BIS Review 39/20086