We have pushed out the timing of the monetary policy easing to June and reduced the cumulative amount through 2006 to 75 basis points.

Monetary policy is not a panacea.

But we aren't in charge of the policy lever.

Because of fears over an early end to the quantitative monetary easing policy and overrated speculation of subsequent rate increases following the policy shift, we have seen last week yields rise to levels that fully price in a 0.5 percentage point rate hike.

Domestic inflation reflects domestic monetary policy.

A good monetary policy follows inflationary expectations and not historical numbers.