That is, on the one hand, an increase in the short-term policy interest rates (either as a result of tight monetary policy or of foreign exchange market intervention followed by sterilization) helps to lower inflationary pressures, but may invite a new round of capital inflows by investors in search of higher yields.
*  *  *  Thank you for accepting the invitation to join us at the Bank of Papua New Guinea to celebrate this important occasion. There are two important dates on our calendar we acknowledge each year.