I believe the monetary authorities have sought to take action to head off the possibility of higher inflation over the course of the next two years.

We have met our inflation target this year every year since 1997.

A year ago some said that the doubling of oil prices would push our inflation far beyond target and that a recession was required to slow the increase in house prices.

The first action we must take is to tackle the cause of the problem, ensuring concerted global action is taken to bring down world oil prices and stabilize the market for the long term.

It is absolutely critical that we take the actions having agreed that action is necessary,

Core inflation is very well controlled and economic growth is weak. The market is starting to price in the possibility that they cut half a point again.