But once firms have adjusted to the new competitive landscape and their selling prices stabilise around a lower equilibrium level, the mark-up squeeze will cease to drive aggregate inflation down. Inflation – once more – will start fluctuating around the level that the central bank chooses for the medium term.
Third, I would lay out several challenges ahead that one could anticipate, requiring reimagination and rebalancing of the research function within the Reserve Bank. 1/6  BIS - Central bankers' speeches  I. Recent Challenges in Policy Making and Research Issues 5.