With some disinflation underway, inflation expectations are, perhaps, getting re-anchored, indicative, in part, of the credibility earned by the new framework; but these are early days, and hence considerable caution and vigilance is warranted on the inflation front.
Recent success in containing inflationary pressures needs to be viewed in the broader context of entrenching macroeconomic stability in which the Government has played a crucial part.1 4. Alongside, the current account deficit remains within sustainable levels, other indicators of external viability such as the ratios of indebtedness to GDP and/or reserves are also reflecting a healthy improvement.