The B40 and vulnerable groups are the ones who will be the most affected if we let inflation get out of hand, and we will not be able to preserve sustainable growth over the longer term. Let us also not forget that keeping rates too low for too long can have damaging effects on the economy. The devastation of the Global Financial Crisis more than a decade ago, which was rooted in the US housing market and caused a synchronised global recession, should continue to serve as a sober reminder of this. Let me briefly now turn to the second thing on everyone's mind when they think about the economy - the ringgit. When it comes to the ringgit, BNM's role is to make sure that its value does not swing too fast or too much either way, and to allow an orderly price discovery. Under a flexible exchange rate, it is reasonable for the ringgit to fluctuate from time to time. These adjustments allow the domestic economy to adjust to global economic and financial shocks. We saw this during the Federal Reserve's rapid and large interest rate adjustments last year, which caused huge shocks to the global economy. At one point, the ringgit declined as much as 11.5% between end-March to early November, before appreciating by 7.8% towards the year end. Yet the real economy grew by 8.7% during the year, thanks in no small part to the ringgit's role as a shock absorber.
Timely implementation of consistent and coordinated policies in a coherent manner is also essential to ensure the realisation of the expected outcome of such policies. In this context, this Road Map intends to set the basis for strong policies and credible frameworks to achieve macroeconomic stability with the support of the government and private sector stakeholders. The outline of the Road Map 2019 is as follows: Section 2: The Central Bank’s monetary policy strategy and policies for 2019 and beyond Section 3: The Central Bank’s policies related to the financial sector performance and stability in 2019 and beyond Section 4: Policies Related to Ancillary and Agency Functions Now, let me elaborate further on these aspects. 11  2. Monetary Policy Strategy and Policies for 2019 and Beyond The Central Bank conducts monetary policy in an increasingly forward looking manner with the aim of maintaining inflation at low and stable levels in the medium term thereby supporting the economy to reach its potential. In 2018, the Central Bank conducted its monetary policy in a challenging environment with rapidly evolving adverse global conditions as well as several upside and downside risks on the domestic front. New developments in the global economy in the wake of rate hikes in the United States and the economic normalisation in most advanced economies have demanded monetary authorities around the world to adjust their monetary policies accordingly.