These developments suggest that there is scope for easing monetary policy alongside fiscal expansion, in order to address the imminent decline in economic activity. It is also important to entrench expectations of low and sustainable inflation by containing the secondary effects of any transitory price shocks. Furthermore, care will have to be taken to ensure that the foreign exchange reserves remain sustainable.
Distinguished Ladies & Gentlemen: Let me conclude by reiterating that monetary policy in 2008 was conducted in conditions of international volatility of unprecedented dimensions.