Monetary Policy Decision Making

  • Monetary policy decisions are taken by the Governor

  • Decisions are taken twice per quarter and are based on the recommendations emerging from the bank’s Forecast & Policy Assessment System (FPAS) (see Figure 1 for an outline of the forecasting process). This is an intensive process that involves the examination of trends, model projections, expert judgement and scenario analyses of all the major variables that impact domestic inflation.

  • The results of this process are documented in a comprehensive Monetary Policy Assessment (MPA) report. The MPA report provides a thorough assessment and forecast of key economic indicators for the international economy which includes developments in key trading partners, a review of the balance of payments, local financial markets, as well as updates and forecasts of real domestic activity, inflation, exchange rate and monetary developments.

Macroeconomic Forecasting Process

Also See: Monetary Policy Objective
Setting the Inflation Target
Implementing Monetary Policy
Monetary Policy Schedule

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