If we lift exports at least to their potential and accelerate reforms, we can look forward to a higher rate of growth in the next five years. Let me add though that we cannot just keep on talking about these issues, or writing reports analysing the same problems that I have talked about today.
It has, therefore, posed a major challenge for policymakers, especially for the Reserve Bank as the key objective of monetary policy is price stability. Why do we need to worry about inflation? How did the inflation dynamics evolve over the past two years? What was the monetary policy response? These are primarily the questions that I will address.