2 These Statements featured a numerical inflation target, to be achieved over the medium term, for consumer price inflation, and noted an appropriate degree of flexibility in the conduct of policy over the short term. They emphasised the independence of the Reserve Bank, as provided under legislation, in the conduct of monetary policy.
This is the stage where firms take the offensive in that they implement comprehensive reform of their management system geared toward the new environment and invest in strategically important areas or new businesses. Though even at this stage there will exist not a few firms which are still defensive, the overall picture is that the economy will recover as structural reform progresses.