To the extent that lower interest rates improve the growth outlook, the decline in interest-sensitive inflows may be more than offset by flows into the equity market or to direct investment. Finally, I should emphasise that while the proposals may have an internal economic logic, the reality may be far more complicated.
In particular, it is not always possible to achieve the goals of low and stable inflation, a competitive exchange rate and low real interest rates simultaneously. There are unfortunately times when conflicts between these objectives will arise, and the bank should be in a position to act independently, in line with its constitutional mandate, when such a situation arises.