At this stage, the Bank sees a reduction in inflation to 7 – 8 per cent as being very feasible.
In summary, my message is that a much needed resurgence in economic activity in 2011 will be greatly facilitated by a social compact – formal or implied, in which the various parties recognize the urgency of their respective roles whereby for instance:  2  BIS central bankers’ speeches  (i)  The Government succeeds in the implementation of the needed fiscal stimulus, including the reduction in arrears to contractors;  (ii)  The Central Bank increases its intervention in the foreign exchange market as needed;  (iii)  The business sector operates with the needed trust and confidence, avoiding the tendency to warehouse foreign exchange;  (iv)  The banks accept the need for a larger reduction in interest rates and banking spreads; and  (v)  Where all the parties contribute to easing the industrial relations climate and generally helping to restore confidence.