A number of other countries reached a similar conclusion over the past 18 months for reasons not very different to the ones I have outlined above. Conclusion I have tried to give an outline of how the inflation-targeting approach operates and how it contributes to improved performance, not only on inflation, but also on output and employment growth.
The outline is necessarily broad and I am afraid it will disappoint those who wish to have answers to specific questions such as why did we raise rates in one month rather than the next? - or why did we raise rates by 50 basis points rather than 25? Inevitably, the answers to these questions involve an element of judgment.