In open economies with unhindered capital flows, it is only when the real exchange rate moves to levels where it is widely expected to appreciate or depreciate that domestic real interest rates can temporarily move away from their international counterparts.
Because of the country’s strong economic fundamentals, there is positive differentiation by global investors. Investments are sustained. BIS central bankers’ speeches  1  Our solid fundamentals create buffers against uncertainties, preserving macroeconomic gains. Credit rating agencies 1 and international financial institutions 2 have recognized the country’s inflation performance. Growth projections are favorable.