Since the beginning of the year headline inflation has gradually picked up, moving from the negative rate of –0.2 in February to 0.5 in October. Our monetary policy measures since June 2014 have been a key factor behind these positive developments. Asset purchases, targeted longer-term refinancing operations (TLTROs) and low policy rates have strongly supported the recovery. Let me explain more in detail.
Graph 1  Communication about monetary policy It is in that context that the Board has left the cash rate unchanged at 2.5 per cent for almost a year now. 6  4  For an insightful treatment of the previous booms, see Ric Battellino’s speech “Mining Booms and the Australian Economy” (2010).