Moreover, the Bank continues to closely monitor market developments within a flexible operational framework and through discussions with market participants, and it expects that both short- and longterm interest rates will move largely on a stable path. E.  Why are inflation expectations so important?
Developing countries have, however, expressed concerns that sometimes these standards and codes are too inflexible, that they do not allow for differences in institutional development, legislative frameworks and different levels of development. The developing countries feel that setting principles rather than rules may be more effective in ensuring compliance.