This gives me some confidence that tightening now anticipated by markets and expected by FOMC participants will be sufficient to reduce demand and inflation. Evolution of the Economy The FOMC’s plan for getting inflation under control depends on a view of the economic outlook.
Central bank reforms  Central to the financial sector reforms were structural reforms at the Bank of PNG, which were considered necessary to achieving stability of the economy in the medium term. Giving the Central Bank more independence and power in the conduct of monetary policy and strengthening financial sector supervision was in line with worldwide trends.