insofar as structural factors prevail over temporary ones, food and energy prices would more likely have second-round effects on other goods and services through cost pressures. While by the end of 2007 headline inflation accelerated in close connection with the behavior of core price indices, these second round effects have not materialized yet.
This measure will however be accompanied by “market education” to ensure that the results are not misinterpreted. My role this evening was just to set the stage for the lively interactions on risk management that will follow shortly. The Central Bank is certainly open to considering ideas that can push forward the risk management frontier.