Portfolio flows have historically been a key source of funding for our current account, which is in a deficit most of the time, and these flows are highly sensitive to global financial conditions.
Our responsibility is nonetheless to be alert to the risks to this scenario that might emerge and prepared for action if they do. What we need to be particularly watchful for at the moment is the potential for a negative spiral to take hold between low inflation, falling inflation expectations and credit, in particular in stressed countries.