Recent economic and financial developments In recent weeks, several downside risks to the Bank’s July Monetary Policy Report (MPR) projection have been realised. The European sovereign crisis has intensified, the U.S. credit rating has been downgraded, and a broad range of data has signalled slower global growth. The United States is in the midst of the weakest recovery since the Great Depression.
The international financial community is pleased that we have undertaken within a short span of time all those tough measures which were committed by the previous governments but were never implemented. Thus our credibility in their eyes has been restored.