The backdrop in which the Central Bank operated in FY2017/18 was relatively stable but challenging. Internationally, while the economic situation in the United States strengthened, growth in several other advanced and emerging economies slowed. On the domestic front, there was also evidence of a nascent recovery from the economic contraction of the previous two years. The Bank’s monetary policy had to finely balance external considerations regarding interest differentials with the need for continued support for a domestic recovery.