Thus, in my own thinking, I have tended to discount, though not dismiss, the latest readings on labor costs. However, I acknowledge that rising labor costs are an upside risk to my  4  BIS Review 92/2006  inflation outlook, especially if they occur under product-market conditions in which firms can readily pass costs through.
In addition, we expect foreign reserves to be supplemented by inflows related to oil exploration activities and by proceeds of foreign loans. With official reserves now equivalent to around 12 months import cover, the Bank is not targeting any additional increase in official reserves in 2011. 11. A brief word on the foreign exchange market.