Consumer price inflation was even higher. There was also expectation internationally at that time that the global economy was moderating after unusually high growth in the last few years. However, some volatility had been observed in international financial markets and there was some expectation of repricing of risks, and its potential effects on financial markets.
Overall, while prospects for growth continued to be favourable, monetary authorities around the world were showing an inclination to be watchful about risks to price and financial stability.