Confidence of the public and the political decision-making bodies that represent the public is of utmost importance for the credibility of an independent central bank. This confidence can only be achieved if information provided by the central bank to the public is clear, and if there is a healthy dialogue between the central bank and political decision-making bodies.
That moderation turned out to be greater and to last a bit longer than we expected. Still, it is important to recognize that inflation is on target and the economy is operating close to potential. That statement alone underscores the considerable progress seen in the economy over the past year. The slower-than-expected growth in the first quarter reflected two main issues.