But it is also true to say that inflation shows signs of not increasing by as much as historical relationships might have led us to expect, given the fall in the exchange rate.
On the current account deficit, it now looks as though it has averaged around 5 per cent of GDP in 1998 rather than the 5½ per cent we expected at the last hearing. I would summarise the situation as being one where the forecast errors were within the normal ranges that occur with forecasts of this type.