No wonder the rise in oil prices makes people nervous. What's to prevent low inflation and steady growth slipping away in future as they have in the past?
She argues that much has changed in the past fifteen years. The present approach to setting interest rates provides much better incentives to make the right decisions. Over the past seven years there has been a "remarkable de-coupling of inflation expectations from economic disturbances" such as sharp rises in oil prices. This is encouraging evidence that the new monetary policy framework is "doing its bit to ensure continued economic stability."
Published on
23 November 2004
Press release