In the same December 18 statement, the Bank made clear that “in order to realize sustainable economic growth with price stability, it is necessary to make wide-ranging assessments of risk factors, including accumulation of financial imbalances observed in, for example, asset prices and credit aggregates”.
Adjustment efforts should be based on credible, fully specified measures as part of a comprehensive consolidation programme. Any windfall gains from higher than expected growth or other factors should be allocated to speeding up deficit reduction. This would help to prevent a repeat of past experiences, when complacency in good times contributed to persistent budgetary disequilibria.