I would be in favour of maintaining the inflation targeting system. I think 2% is a reasonable target. I certainly would not suggest increasing the target. I see no genuine or likely benefit from increasing the target. I would consider reducing the target, although I think there's a legitimate debate about whether the benefits from lowering the target to 1.5% or 1% would outweigh the costs. I think that's a legitimate debate. I think the case is much weaker for raising the rate.
On November 15th, 2011. See this statement in context.