Higher capital and liquidity requirements are being considered which could potentially increase the cost of banking business, which could ultimately be reflected in higher lending costs. As these measures may have adverse implications for financial inclusion, policy makers may need to look to tweaking regulations to facilitate financial inclusion. 68.
Promoting economic welfare through inflation control While we work to promote financial stability in conjunction with other agencies, we alone are responsible for monetary policy. The foundation for that policy is the inflation-targeting system. How this system works may be familiar ground for some of you, but it is worth discussing again, especially during these uncertain economic times.