Notwithstanding a fluid environment in 2011, we successfully kept inflation within our target range; this gave us room to lower our key policy rates yesterday, our first rate cut in 2 ½ years. At the same time, steady inflow of funds kept our external position strong, with our international reserves hitting record levels; this provides us buffers for potential external shocks.
2011 was also characterized by robust bank credit that continued to underpin economic activities. For instance, lending as of November 2011 was up 22%, with the productive sector claiming four-fifths of total loan portfolio. And while we closed banks in violation of banking laws, continued public confidence in our banking system kept bank deposits at all-time high levels.