Let me make it very clear, we do not target a specific level of inflation, as we do not follow an “inflation targeting” objective. We want inflation to be stable and predictable, so that investors, the business community, and households have some certainty in planning for the future. In 2008 the annual inflation increased to 11.2%. It was above the acceptable two digit range.
Heightened concerns about larger losses at financial institutions now reflected in various markets have depressed equity prices and could induce more intermediaries to adopt a more defensive posture in granting credit, not only for house purchases, but for other uses a well. Liquidity provision and bank funding markets Central banks have been confronting several issues in the provision of liquidity and bank funding.