We ought also to be able to maintain relative exchange rate and financial stability. The Bahamas must be prepared to move in this direction only as fast as we are able to erect the appropriate safeguards around highly liquid capital flows. At the same time, we should strive to put such frameworks in place.
In the context of relatively contained underlying inflationary pressures, the ECB has left its key interest rates unchanged since June 2003. The low level of nominal and real interest rates has provided significant and continued support to the economic recovery. At the same time, upside risks to price stability remain.