BoB revives year-end inflation target

After initially targeting the second half of 2012 for inflation to fall within the range, the BoB has in the past four months seemingly avoided to commit to inflation targeting preferring to say, in its regular market updates, that inflation will fall within the range in the medium term.

However, in a mid-term monetary policy review statement released yesterday, the bank says despite the anticipated inflationary pressures including a possible power tariff increase before the end of September, inflation should trend down towards the upper end of the objective range before the end of 2012.