While it is not possible for any country to remain completely unaffected by developments in the international exchange markets, fortunately we were able to keep the spillover effects of the Asian crisis to a minimum through constant monitoring and timely action, including recourse to strong monetary measures, when necessary, to prevent the emergence of self-fulfilling speculative activities (Mohan, 2005).
We do not specify ex ante a sequence of policy actions, as I have said clearly since last December. The appropriate policy stance will always depend on information on the economic and monetary side and on the source and dynamic properties of the underlying shocks that will hit the economy and we will always remain alert.