17  This is particularly true when the underlying level of inflation is reasonably close to the mandate-consistent rate, as I believe to be the case at the present time. 4  BIS Review 95/2008  the unemployment rate is, as best as I can judge, above the natural rate.
Without any ex-ante conditionality, this line provided a way of staunching any unexpected massive forex outflow and financing the growing balance of trade deficit that, under this scenario, could no longer be funded by the combination of net foreign investment inflows and the rise in earnings on the services account on which the economy depended to balance its books.