But in 1991, two years ahead of the deadline imposed by the Policy Targets Agreement, inflation fell within the target for the first time, to the considerable surprise of many people both inside and outside the central bank. And in 1992, inflation was again within the target. And in 1993. And in 1994.
By this time, many people, again both inside the central bank and outside it, were coming to believe not only that inflation could be kept inside a 0 to 2 per cent target, but also that keeping inflation within the target was not such a difficult job after all.