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

Release date
Vol. 62. No. 1. March 1999
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?"