BIS central bankers’ speeches  13  In this scenario, central banks in EMEs have to weigh both internal and external determinants of inflation, since they can point towards opposite policy actions. Thus, the assessment of the appropriate monetary policy stance has become a more difficult task.
It was well understood that this process would not be painless, that the depreciation of the currency, the drainage of liquidity and the rising interest rates would all demand costs and sacrifices that would not be popular, and that the monetary authorities would be blamed by some ill-disposed observers for the dilemma.