For example, in the case of open market operation (OMO) sales, owing to the difference between international and domestic interest rates, there is a positive cost of sterilisation in case the domestic interest rates are higher than the reserves. This cost is borne by the central bank.
The structural break is estimated to occur where the average annual rate of inflation is 8%.” Despite this uncertainty about the negative correlation between inflation and growth at inflation rates below 8%, there is still no evidence of a positive correlation between inflation and growth over any long period of time.