Ladies and Gentlemen: In many ways 2011 has been a challenging year given the global and domestic shocks hitting the economy. The characteristic supply shocks – like fuel prices – have affected negatively both domestic prices and output. Despite the shocks, the economy has remained resilient and is expected to register a modest growth of 5% in 2011 compared with 4.6% in 2010.
Having endured the shocks buffeting the economy, the Central Bank has focused its policy response on containing inflation and stabilizing the exchange rate. The Central Bank tightened monetary policy by raising gradually both the CBR and CRR to 16.5% and 5.25%, respectively.