Since 2000 the task of protecting the purchasing power of our money has been given clearer definition, with government adopting an inflation-targeting framework. The target has been set at 3 to 6 per cent, and the Bank has instrument independence to do what is necessary with its repurchase rate to ensure that inflation remains inside the target band.
In doing so, the Bank is mindful of the lag between changes in the repurchase rate and inflation, and of the need to avoid unnecessary volatility in output. 4  BIS central bankers’ speeches  Since 2002, when the inflation target became effective, the targeted rate of consumer price inflation has averaged 6,1 per cent to date.