Our target is to achieve an average rate of inflation, over time, of between 2 and 3 per cent. We also see the inflation objective as nested within the broader objective of welfare maximisation. So the question the Reserve Bank Board often asks itself in making its interest rate decision is how our decision can best contribute to the welfare of the Australian people.
As the status of Asian countries has improved in terms of per capita GDP, the standing of Asia in the global economy has been enhanced.