2  BIS Review 126/2008  Thus, the Bank of Mauritius will continue to play an effective role whether in the orderly operations of the financial markets or ensuring the safety and soundness of the financial system or for that matter the development of e-payments in the country. Thank you all for your attention. BIS Review 126/2008  3
Transmission Mechanism Monetary policy is known to have both short and long-term effects. While it generally affects the real sector with long and variable lags, monetary policy actions on financial markets, on the other hand, usually have important short-run implications. Typical lags after which monetary policy decisions begin to affect the real sector could vary across countries.