Your browser is not supported

Our website does not support the browser you are using. For a better browsing experience update to a compatible browser like the latest browsers from Chrome, Firefox and Safari.

Inter-forecast monetary policy implementation : responding to unexpected exchange rate developments

Benjamin Hunt, Adrian Orr

Although the stance of monetary policy is primarily determined at a quarterly interval, in the light of a comprehensive inflation projection, the implementation of policy occurs day to day. This article addresses the question : "how should movements in the exchange rate be taken into account in day-to-day policy implementation?"