It would be extremely dangerous to let inflation expectations deanchor… … That means letting them fall significantly below the target of 2%... … Right. Not under any circumstances we should let that happen. If that happens it would be extremely difficult to regain control of inflation expectations. They are a main factor for future inflation.
Another encouraging sign is the recent announcements by two Chinese banks operating here in Sydney regarding RMB clearing services. Conclusion The internationalisation of the RMB – and China’s associated move towards a liberalised capital account and more flexible exchange rate regime – has the potential to create a seismic shift in the international monetary and financial landscape.