On the other hand, domestic securities declined by $ million as RBF holdings of Government bonds matured (Page 68 Note 6). Unlike short–term papers and domestic securities which are assets of the Bank, demand deposits are a liability and rose significantly over the year directly correlating to the level of foreign reserves.
Nevertheless there is evidence that underlying inflation is becoming more generalised as evidenced by the fact that this narrower measure of inflation has been trending upwards in recent months from a low of 2,5 per cent in June last year.