In addition, the assessment of the Governing Council is that risks to the growth outlook remain tilted to the downside, especially in relation to external developments. Taken together, these factors require continued close monitoring and analysis in assessing the likely future path for inflation and output. Let me make a couple of points about the design of the policy package.
Firms became extremely risk averse in their investment behaviour, and this has weakened the growth potential of the economy. Considering that the objective of macro-prudential surveillance is to support the stable growth of the economy by ensuring the stability of the financial system, I think that Korea's experience over the last ten years underlines just how important macro-prudential surveillance really is.