Macro-economic vulnerabilities facing our economy have significantly receded, thanks to improvement in growth outlook, fall in inflation, sharp reduction in oil prices, recovery in the external sector coupled with a bigger war chest of forex reserves, and a strong commitment from the Government to contain fiscal deficit.
This implies we are much better positioned among our peer countries to cope with future uncertainties and vulnerabilities. Having said that, we cannot afford to be complacent and that is why we want to be cautious in our approach and want to be more certain than everyone else that our economy and financial system do not have to repeatedly face many of these vulnerabilities.