However, I see room for further action from advanced economies in at least three areas. First, unconventional monetary policies, though fundamental to overcome the global financial crisis and underpin the recovery of demand in recent years, provide only a temporary stimulus to economic activity.
In April of 1999 our main refinancing rate was lowered to the then unprecedented level of 2.5 per cent, when inflation was around 1 per cent and the economy was showing signs of weakness.