Now that the economy is tentatively showing signs of stabilization and even strengthening should further support the Aussie bulls medium term target with a high 1.04 handle.

FORBES: Eurogroup Meets, Could Kick Greek Can Into 2015

For its part, the IMF, in a separate update to its fiscal forecasts also released today, describes the government's decision to maintain its medium term target for the deficit as "appropriate".

BBC: IMF expects less of the UK and a lot of the US and Europe

ECB's medium-term target of less than 2%.

ECONOMIST: European Central Bank

Japan is on track to meet its own medium-term target of halving the primary deficit by FY2015 from its FY2010 level, but more action is needed to reach its long-term target to reduce its debt-to-GDP ratio from FY2021 onwards.

WHITEHOUSE: The Los Cabos Growth and Jobs Action Plan

Month after month, in this period of above-target inflation, they have concluded the risks - to growth, and to the medium-term inflation target - of acting now are greater than the risks of staying put.

BBC: Inflation: Balancing the risks

In order to tackle its debt, additional cuts worth 4.5% of GDP would also be needed over the medium term to reach the target of a budget surplus of 4% of GDP by 2018, the IMF said.

BBC: Cyprus rescue plan will require great efforts, IMF says

The committee expects labour productivity growth to resume slowly, helping to bring inflation back to target in the medium term.

CNN: SHARE THIS

In the light of that outlook, the Committee judged at its October meeting that an immediate reduction in Bank Rate of 0.5 percentage points to 4.5% was necessary to meet the 2% target for CPI inflation in the medium term.

BBC: Central banks' official statements