The arguments for keeping central banks closely involved in prudential supervision are even reinforced in the context of Monetary Union. More integrated financial markets can absorb shocks more easily than in the past, which is a very beneficial outcome.
We will continue to intensify environmental scanning and surveillance of key macroeconomic developments to ensure that our assessments of the inflation outlook and the risks to inflation remain fresh. The Monetary Board will take the necessary and decisive action to address the threat of high inflation.