The high growth phase that started in the 1980s has now lasted for three decades, with the pace of the 1980s being maintained in the 1990s before it accelerated further in the next decade.
This means that we will raise interest rates to dampen total demand when we see that inflation is threatening to rise above our 2 per cent target over the next 18 to 24 months. In the same way, we will lower interest rates to stimulate demand when we see that the trend of inflation is poised to fall below the target.