As I stated at the launch of the Statement in February this year, monetary policy indeed focuses on the containment of inflation within a medium-term (3-year) horizon on the basis of inflation forecasting. This is in view of the significant transmission time lag before policy action takes effect.
Accordingly, therefore, monetary policy will be preemptive, as necessary, in order to mitigate secondround effects relating to unsustainable demands for wages and other domestic resource increases, which would lead to a further spiralling of inflation. It is just as important to anchor expectations of low and stable inflation.