Furthermore our forecasts suggest that inflation could reach the 6 per cent level by the second quarter of next year. In response to the deteriorating inflation outlook, the monetary policy stance was adjusted in June of this year when we increased the repo rate by 50 basis points.
Notably, in its last report on the World Economic Outlook, the IMF considered the real effective exchange rate of the euro to be on the strong side of medium-term fundamentals. 6 Looking more closely at the euro-dollar exchange rate, some observers have expressed their surprise at the appreciation of the dollar against the euro since mid-2008.