This action along with the media release following the March Board meeting and a speech by the Governor helped restore more orderly functioning to the market. We were not concerned about the fact that bond yields were rising nor the volatility per se, but rather market functioning.
As globalization proceeds, competition with newly industrialized economies that enjoy lower labor costs has been compelling firms to raise productivity and to retain their restrictive stance on labor costs, together with greater exposure to the discipline of the capital market. The second is the influence of deregulation.