In this backdrop, it was decided to constitute a Group of State Finance Secretaries on the Fiscal Risk on State Government Guarantees to examine the fiscal risk of guarantees extended by the State Governments. The report of the Group was discussed at the tenth Conference of the State Finance Secretaries, held in June 2002.
In light of the current outlook for inflation, we need to remain vigilant and carefully assess incoming information, including exchange rate developments. It is necessary to maintain very favourable liquidity conditions and an ample degree of monetary accommodation for an extended period of time, and in any case for as long as necessary.