As I mentioned earlier, although prices are currently rising, the reality is that it remains uncertain whether the price stability target can be achieved in a stable and sustainable manner, as neither rises in firms' growth expectations nor sustained increases in wages can be seen conclusively. 8  Second, exchange rates are not subject to direct control by monetary policy to begin with.
With gross retail margins amounting to about 30 percent of sales, a reduction in currently elevated margins could make an important contribution to reduced inflation pressures in consumer goods. Labor demand continues to exhibit considerable strength, which is hard to reconcile with the more downbeat tone of activity.