We are certainly taking into account the potential price pressures of excessive exchange rate volatility. We remain confident that our fundamentals are solid and healthy. 1/2  BIS central bankers' speeches  We recognize that sustained pressures on the peso could adversely affect inflation expectations. Further, some demand side pressures may already be feeding into inflation considering the sustained strong economic growth.
I will now turn to the remedies and policy actions needed to address these challenges. IV. Addressing the challenges  For the first challenge, improving real economic performance, there are at least three policy priorities.   First, policies are needed which enhance competition and innovation to speed up restructuring and investment, thus creating new business opportunities.