Our liaison suggests that, beyond the benefits being experienced by equipment hire, engineering, surveying and consulting firms, businesses as diverse as those supplying modular housing, laboratory services and the training of semi-skilled, trade and other workers are seeing effects of the expansion. Meanwhile, other sectors are being squeezed by the high exchange rate or by the much-touted household caution.
And indeed we are not categorically ruling out further interest rate steps. Our focus is to ensure that market expectations as regards our monetary policy stance are more in line with our assessment of the medium-term outlook for price developments. There have recently been discrepancies.