Indeed this is a concern for most developing countries at present. Many of them have initiated a fresh round of structural reforms in their financial systems. A number of international agencies, including the Bank for I would like to acknowledge with thanks the help of Shri M.S. Mohanty and Shri Partha Ray of the Reserve Bank of India in the preparation of this lecture.
In conclusion, with today’s decisions the Governing Council has acted in a forward-looking manner in order to contribute to the maintenance of favourable conditions for a lasting, non-inflationary economic expansion. This should help other economic actors to rely firmly on the maintenance of price stability in the medium term.