The Dangers of Inflation Targeting

The Reserve Bank of Australia was the first and only central bank in the OECD to raise interest rates at this time. Some of my colleagues thought I was slightly obsessed with house prices, says Mark Carney. The issue is though that we had a monetary policy framework which we're very comfortable with. But it's not as though we ditched our inflation targeting regime and said well let's do something totally different. And so we believed that we should return them back towards normal.