With regard to the first pillar, strong growth of money and credit throughout 1999 and the pronounced expansion of money and credit aggregates over the first four months of 2000 have strengthened the view that liquidity conditions are ample.
As for the second pillar, in a phase of strong growth upward risks to price stability currently relate mainly to the spillover of rising import prices to consumer prices, owing both to the lagged effects of the exchange rate depreciation and to rising oil prices. In fact, most inflation forecasts have been revised upwards over recent months. This is a matter of concern.