With non-government bonds on issue now BIS Review 23/2000  2  totalling about $ billion, this market is now about as large as the market for Commonwealth Government securities. This development is beginning to produce a “credit curve” in Australia.
On the other hand, even when inflation is suggested by data, central banks may need to reduce interest rates in particular situations. A good example would be an increase in consumer prices resulting merely from a temporary rise in crude oil prices due to supply-side factors.