Our concern was that an acute/unabated undervaluation of risks would create financial stability pressures, particularly in the real asset markets. While the risk of overhearing in the asset markets has since dissipated, we are not about to reverse that course of action yet.
We will, however, consider 1) the actual and expected capital outflows that may result from the current global financial market rout and their impact on M3 growth, and, 2) carefully review the balance sheets/portfolios of the banking system to see if there is a need to adjust policy settings or tweak macroprudential measures. We will also, and more importantly, monitor inflation expectations.