Second, financial markets have increasingly become globally interconnected such that monetary policy, whether good or bad, can be rapidly transmitted and thereby, impact on the behavior of market participants. It then becomes imperative for central banks to effectively communicate their actions to allow financial markets to figure out policy decisions. This is good for business and macroeconomic planning and promotes general stability.
More needs to be done, however, to restore the conditions for a pick-up in investment, both domestic and from abroad. A business environment more conducive to growth needs to be established through further structural and product market reforms and a full implementation of the privatisation programme.