I shall start with a brief glance back at the convergence process in the run-up to monetary union, and then draw your attention to the differences in growth and inflation rates that still exist in the monetary union. From the monetary policy standpoint, what interests me most are the reasons for those differences.
Preemptive monetary measures, in conjunction with fiscal and other supply-side measures, helped to contain inflation and inflation expectations. Since the second half of 2008-09, domestic inflationary pressures, as measured by wholesale price index (WPI) inflation, have eased on the back of sharp correction in international oil and other commodity prices.