BIS Review 90/2000  10  notice - any investment and spending plans that were based on inflationary expectations were likely to end in disappointment. Price stability, although often referred to, was not, however, clearly defined. It was presumably much lower than the prevailing rate of inflation (which was hovering around 4% and under upward pressure), but this was not made explicit.
In addition, the path that inflation was expected to follow on the way to price stability was not outlined. A desired inflation path was an important part of the Bank’s internal projection exercise, but it was not announced publicly.