At the same time, we use macroprudential tools selectively to address financial stability pressures, including those related to potential exchange rate volatility. To illustrate, in our last two policy meetings, we raised the reserve requirements because we needed to pre-emptively address strong liquidity growth that could lead to potential asset bubbles.
Meanwhile, even as the balance of risks remained tilted to the upside, we kept policy rates steady because the assessment is that inflation over the policy horizon would still be manageable. Together, these moves would make any future monetary policy move more effective.