Yet at the same time we need to understand and manage those collateral effects – and in pursuing our mandate we should attempt, to the extent possible, to minimise them. Where this is not possible, we have a duty to raise awareness so that mitigating or corrective action can be taken by other relevant authorities.
The convergence towards our objective needs to be durable – one swallow does not a summer make. We need to see clear evidence that once inflation returns to our objective, it will remain there. The third criterion is that inflation needs to be self-sustaining.