At least in part as a consequence, the economy accelerated somewhat above a sustainable level, and inflation pushed to, and eventually slightly above, the top of the inflation target.
We recognised that we had to pay more attention to the impact of interest rates, and this in turn caused us to start looking rather further into the future, in formulating policy, than had been necessary when we were primarily focused on the direct price effects of exchange rate movements (most of which came through into consumer prices within two to four quarters).