The timing and pace of further increases in the policy rate, and the start of QT, will be guided by the Bank’s ongoing assessment of the economy and its commitment to achieving the 2% inflation target. Today I will provide an update on economic developments, with a focus on inflation and the forces behind it.
We saw a large and persistent increase in demand, sparked by rapid economic growth in emerging markets. In China, the world’s most populous country, economic growth averaged about 10 per cent annually between 2001 and 2011, a period that included the global financial crisis.