The second lesson we have learned, is that moderate and contained levels of financial turbulence do not necessarily have to be at odds with medium-term price stability. Repricing of risk in financial markets can contribute to tighter financial conditions for a given policy rate.
Moreover, consumption growth should develop in line with real disposable income growth. High and volatile oil prices and persistent global imbalances pose downside risks to growth. On the domestic side, reducing uncertainties associated with the extent and pace of fiscal and structural reforms would support consumption, as such uncertainties seem to be limiting private sector expectations of future real disposable income growth.