It had resisted the calls saying it had to keep inflation in check.
Central banks' second function is macroeconomic stabilisation, setting interest rates to keep inflation in check without causing the economy to stop and start.
Last month, Finance Minister Guido Mantega told reporters during a conference call that macro measures to tighten credit and keep inflation in check were working.
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Productivity increases have been strong in recent years, due in large part to improvements in technology - helping keep inflation in check while the economy expands.
This method is one which central banks can use to deal with a liquidity crisis without having to cut interest rates, and thus keep inflation in check.
And, for the overheating economies on Europe's periphery, such as Ireland, Portugal and arguably Spain, a looser monetary policy would make it even harder to keep inflation in check.
Kuczma thinks that India is still in the middle of monetary tightening raising interest rates to keep inflation in check while Brazil and China are in a sligthly better position.
The US gets a cheap and stable source of funding for its trade deficit, allowing the economy to continue to grow as consumers purchase cheap foreign goods - whose low prices keep inflation in check.
Furthermore, Wilson, the only president with a doctorate, tried to use the newly created Federal Reserve system and an elastic money supply to keep inflation in check, but the U.S. still saw double-digit inflation from 1917 to 1920.
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The robust trade data and tame inflation numbers are a positive for the world market place because they suggest China is on the upswing and also will not have to tighten monetary policy to keep inflation in check.
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If all a wealth manager does is keep longevity and inflation risk in check for a client, the manager is covering important bases.
In fact, he seems more worried about inflation than the institution whose job it is to keep it in check, the Bank of England.
As expected, Brazil imposed a 6% financial transactions (IOF) tax on offshore loans as part of a series of planned measure to curb inflation by limiting credit, and keep the local currency in check.
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Uncontrolled borrowing tends to lead to a lot of wasted investment - which increases the prospects of bad debts - as well as the risk of higher inflation, both of which China needs to keep in check.
If the central bank revives inflation, it eventually will have to raise interest rates to keep price rises in check.
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