All these sources of uncertainty mean that, when we look back on the way in which monetary policy was formulated in March 1999 from the vantage point of, say, 2002, what seemed like well-founded decisions as we finalised our decision on the Official Cash Rate last week may seem hard to justify.
In this process, financial markets and financial policy can provide support through broadening financing channels, improving foreign exchange management, enhancing insurance protection, supporting enterprises to identify and take their relative advantages, providing hybrid loans, syndicate loans, assets securitization, stocks, bonds, project finance and other financial instruments and continuously deepening foreign exchange administration reform for overseas investments. 2  BIS Review 93/2007  IV.