The most important challenge would be to further lower the twin deficits by staying on path of fiscal consolidation, keeping a tab on private consumption demand and using expenditure switching policies to lower CAD. Monetary policy would for some more time need to focus on inflation while using available space to support growth to the degree it can.
Achieving price stability is in our legislative mandate because it is the contribution we can make over the long run to enhancing economic efficiency and setting the foundation for sustainable growth. Perhaps, this would be a good place for me to stop and you to register your opinions on some of the issues I have covered here. BIS Review 4/1997