The producer price index also shows that while the headline PPI inflation increased by 7,8 per cent, the imported component increased by 2,1 per cent. This favourable inflation prognosis has allowed us to reduce interest rates to their lowest levels in about 30 years. Our real interest rates are also low by comparison with recent experience.
This brings me to two areas that I believe merit further attention on the part of policymakers going forward: •  First, is there a role for the official sector to address procyclicality as a source of financial instability? •  And second, should monetary policy embody in its objective function the health of the financial system?