On May 6 of that year, investors were stunned when the Dow Jones plunged almost 6 per cent before recovering – and all that in 20 minutes. In light of such incidents some have argued that post-crisis regulation has put pressure on banks to quit activities, which led to reduced liquidity, thereby increasing the likelihood of extreme price swings.
Inflation is seen to be manageable over the policy horizon, even as the inflation path has somewhat moved higher. The left hand side of the screen lists the potential price risks.