It should also take into account global economic development and international cooperation to help secure the current period of strategic opportunities. Exchange rate adjustment helps improve the relative position of domestic and external prices, and optimize resources allocation between domestic-oriented sectors and the external sector. It supports domestic consumption growth, industrial restructuring and innovations.
We are pleased to be here with you today to discuss the January Monetary Policy Report Update, which we published this morning. The outlook for the global economy has deteriorated since the October Monetary Policy Report, with the intensifying financial crisis spilling over into real economic activity. Heightened uncertainty is undermining business and household confidence worldwide and further eroding domestic demand.