The anchoring of long-term inflation expectations is also confirmed by the results of the Survey of Professional Forecasters conducted in early January, which signals that they have decreased slightly to 2.1 per cent. Indications of a decline in inflation expectations, in particular at longer horizons, also emerge from the ECB Consumers Expectations Survey (ECB-CES).
For example, the current fiscal position should allow the  BIS Review 117/2007  1  authorities to put a fiscal buffer in place to help deal with the impact of any such developments, while still continuing to fund key infrastructural improvements. Over the medium-term, the economy still has the potential to grow by around 4 to 4½ per cent.