Broader considerations While insisting on transparency may seem to be an insufficient official response to the manner in which the spread of SVR rates has drifted up, I would insist on my words of caution against the enacting of legislation that would provide for officially-administered lending rates.
In terms of the Reserve Bank’s twin statutory objectives, inflation is trending downwards; the year-end inflation forecast remains unchanged at 3.5 percent, and foreign reserves are comfortable at just under $ billion or the equivalent of 5 months of retained imports. Given this scenario, our monetary policy stance remains accommodative. I am glad to say that the financial system continues to be sound.