Monetary policy does not react to deviations of monetary growth from the reference value in a ‘mechanistic’ way. In the first instance, such deviations will be thoroughly analysed to infer any signals which they may offer about the prospects for price developments.
If the deviation points to a threat to price stability, monetary policy will react in a manner appropriate to counter this threat, rather than attempting to eliminate the deviation of monetary growth from the reference value in the short term. The first reference value for M3 growth has been set at an annual rate of 4½%.