With the new practice of agreed targets between the Bank and the Minister, the directive power, which has never been used, now seems even less likely to be used. Nonetheless, if there were a fundamental disagreement on the targets when they came up for renewal, the Minister could impose his will via a directive.
That would likely lead to the Governor’s resignation and a new Governor, who was prepared to accept the desired targets, would have to be chosen.15 As long as no directive is in force, the Bank must take full responsibility for its monetary policy actions.