In this context, managing exchange rate volatility would continue to be an issue requiring attention. A further challenge for policy in the context of fuller capital account opennes will be to preserve the financial stability of different markets as greater deregulation is done on capital outflows and on debt inflows.
Overall, I expect GDP growth to continue at a moderate pace, supported by household spending, renewed business investment, and the waning effects of past dollar appreciation on export growth. I will now turn to inflation. Headline PCE (personal consumption expenditures) inflation has moved up this year, with the 12-month change reaching 1.2 percent in September.