In India economic activity continues to expand at a rapid pace; in 2004 GDP grew by 6.4 per cent. Latin America experienced growth of 5 per cent in 2004, compared with 1.8 per cent in 2003. The acceleration involved all the main countries; in Brazil, GDP grew by approximately 5 per cent.
To do what monetary policy can do towards meeting our goals of maximum employment and price stability, and to ensure that these goals will continue to be met as we move ahead, we will most likely need to proceed cautiously in normalizing the stance of monetary policy.