Hence, it seems appropriate to provide a brief update and some comments on a few issues connected with monetary policy. Economic update It appears that the economy’s pace of growth increased somewhat in the second half of last year, and that this persisted in the first few months of 2014.
Real GDP expanded at an annualised pace of about 3 per cent in the second half of 2013, up from just under 2½ per cent in the first half. Business survey readings are broadly consistent with this picture. The March quarter of 2014 saw a further pick up, to something that was above trend, measured either in the quarter or over the year.