Globally, the Fed’s pronouncements and actions with respect to its withdrawal of accommodative monetary policy (or the Fed tapering) brought heightened volatility to our financial markets. The resulting market uncertainty and portfolio rebalancing got reflected in a reversal of the strong capital inflows of previous periods.
Rising global prices of primary commodities, energy, as well as higher imported inflation, will continue to exert inflationary pressures for several more months. However, these pressures are expected to subside over the projection horizon, as indicated by projections of relevant international institutions, as well as market expectations.