In this situation, within Asian emerging economies, concern over inflation has started to heighten partly because of the rise in commodity prices, as well as the robust domestic demand. Moreover, in terms of maintaining the domestic demand expansion, wage increases in tandem with price rises are inevitable. This might in turn increase upward pressure on inflation.
However, it is time for us to prepare for potential changes in our current account balance and in what are adequate amounts of liquidity, as a result of the changing economic structure at home and abroad. In this regard, we need to break away from focusing on liquidity absorption and improve our management system to ensure flexible liquidity provision in peacetimes as well.