Often it wasn't appreciated that if much of the investment equipment is imported, the exchange rate doesn't appreciate as much. Yes, other sectors, including manufacturing, will find it harder to compete with imports when the exchange rate is high. But that isn't a permanent state of affairs. In any case, the international evidence is that the Dutch disease doesn't necessarily reduce long-term growth prospects.
Factors influencing monetary policy In the April Monetary Policy Report, we listed a number of factors that we intended to watch closely as we set monetary policy. These factors are the pace of economic expansion in the United States and overseas, the strength of domestic demand, financial market conditions, and the evolution of inflation and inflation expectations.