These included a broad-based weakness in the prices of goods, substantial reductions in the prices of tourism-related services because of SARS, and a slightly faster easing of pressures from auto insurance premiums. The substantial fall in the value of the U.S. dollar added to the weakness in goods prices.
12 Other things being equal, if at the time of liftoff the CIE index is below its pre-ELB level, then my desired pace of policy normalization post-liftoff to return inflation to 2 percent—as well as the projected pace of return to 2 percent inflation—would be somewhat slower than if the CIE index at the time of liftoff is equal to its pre-ELB level.