I will frame my remarks along three dimensions, namely (i) uncertainty about the current state of the economy, (ii) uncertainty about the structure of the economy; and (iii) uncertainty over the way economic agents form expectations about future economic developments and economic policy actions.
And this is so because we have stuck to our mandate which requires the Central Bank to adhere to conservative reserve management principles and to have in place as many risk mitigants as feasible. Let me explain our reserve management system: Very often central banks are criticized for being too conservative in investing the country’s reserves and not maximizing their income potential.