The existence of administered prices in commodities critical to inflation expectations, perceptions or indicators complicates the relationship between prices and monetary policy transmission, though the outcome may be socially desirable. Third, the presence of administered interest rates, even in segments of a financial system, could hold back appropriate adjustments in real rates as a sequel to changes in the policy rates.
Given the forecast that our economy will continue to grow at a rate in the middle- to upper-2% range, and that the demand-side inflationary pressures will not be large, we will need to maintain our accommodative monetary policy stance.