Whatever the motives of the countries were, the adoption of an inflation targeting strategy in all cases reduced the role of formal intermediate targets or guidelines, such as the exchange rate or the growth rate in money supply. Commitment to an intermediate target would be inconsistent with inflation targeting except if it is the only determining factor of inflation. Obviously this is unlikely.
BIS central bankers’ speeches  1  The objective is to enable the BSP to monitor public sector borrowings and to assess their impact on monetary aggregates, the price level and the balance of payments in fulfillment of its role and mandate to promote and maintain monetary and financial stability.