A further point to add here is that even maintaining a balanced fiscal position on a daily basis would not ensure these effects would be avoided. Even with the fiscal position in balance, the system could be destabilised by changes in the public’s demand for currency.
Under our policy framework, our mandate is to provide low, stable and predictable inflation. That’s the best contribution we can make to the country’s economic and financial welfare. Achieving our inflation goals lays the foundation for sustainable economic growth. And keeping inflation close to its target means the economy is running close to capacity with full employment.