In addition, with a clearly defined inflation objective, it is important that the Reserve Bank continues to report on how it sees developments in the economy, currently and in prospect, affecting
expected inflation outcomes.
With the benefit of hindsight, given the lower - than -
expected inflation outcomes, this would have resulted in a significant undershooting of the inflation target.
Not exact matches
Inflation outcomes during 2004 were higher than had been
expected at the start of the year.
But a period of more moderate growth would be a better
outcome than either allowing
inflation to go unchecked or
expecting the major economies to do all the heavy lifting.
We will
expect the figures to have an influence on the EUR, with any hint of a pickup in
inflation and stable economic growth through the 1st quarter the best
outcome for the EUR and those looking for Draghi to begin shifting on policy towards interest rates.
I
expect that a further decline in real yields would prompt us to reduce our holdings modestly, as it is doubtful that persistent
inflation surprises will be a near - term
outcome.