Against this backdrop, I will begin by reviewing the concept and the trend in global liquidity. I then highlight the impact of global liquidity on asset markets and EMEs before turning to our experience in managing the spillover.
While it is important to interpret with caution what you see through the international lens, we have seen how it can help us resolve domestic economic puzzles and guide policy. With regard to inflation, fixed investment, exports and the household sector, it has also pointed the way to more positive outcomes and supported the base-case projections of the Bank.