Such considerations have led most observers to favour a low but positive rate of inflation. Those who prefer zero tend to point to the distortionary effects of the tax system,3 or to the risk that any positive number can be revised up, as justifying the more ambitious target. 1  Fischer, Stanley: "Why are Central Banks Pursuing Long-Run Price Stability?"
Over the past few months, gross foreign exchange reserves have increased to levels above USD35 billion, largely due to the successful international bond issue which took place in May this year.