Following my speech, I am looking forward to receiving your candid opinions about the content of my speech as well as the situation of the local economy. II. Economic activity, prices, and the new monetary policy  I will begin my presentation by describing the Bank’s outlook for economic activity and prices presented in the Outlook Report released in April.
Some times, there could be even a trade-off between raising the short-term interest rate and tightening of prudential norms if risks are perceived to originate from certain segments of the market. The highly leveraged lending operations in the backdrop of asset price bubbles, might require adjustments in margins and risk-based capital requirements.