The rate on three months’ bankers acceptances gradually declined from 17.00 per cent at the end of 1996 to 14.25 per cent last week. The Reserve Bank endorsed these movements in the underlying financial aggregates by reducing the Bank rate from 17 to 16 per cent on 20 October 1997. 4.
The role of monetary policy in the adjustment process As the globalisation process progresses, financial markets, and particularly those of the smaller economies, lose some of their independence. In these countries, the task of central banks becomes more difficult.