1/5  BIS central bankers' speeches  In addition, underlying these global price spikes are increasing domestic demand pressures, which can drive more generalised price rises and inflation. In response to the rising inflation risks, in October this year the OCR was lifted to 0.50% and then to 0.75% in November.
The world's largest economy, the United States, currently runs a current account deficit, financed to a substantial extent by capital exports from the emerging market economies. Further, the level of financial development per se does not seem to determine the direction of capital flows.