Once the Bank returns to profitability, there will be a need to rebuild the contingency reserve, and reconsider the level that this should stand at taking account of recent experience.
This approach helps to influence inflation expectations and contributes towards fostering policy credibility, which is critical in achieving long-term price stability. Distinguished Ladies & Gentlemen: It will come as no surprise to you that this year’s Monetary Policy Statement is launched in a substantially different global and domestic macroeconomic environment than was the case last year.