But let us not forget that these developments have come against a backdrop of an unemployment rate at a 40-year low and inflation close to target, consistent with an economy that has been operating close to its capacity. We will assess all of these new developments in our new projections in the January MPR.
Governing Council determined yesterday that the current level of interest rates remains appropriate for the time being. And, weighing all of these developments, we continue to judge that the policy interest rate will need to rise into a neutral range—somewhere in the neighbourhood of 2.5 to 3.5 per cent—in order to achieve the inflation target.