The existence of administered prices in commodities critical to inflation expectations, perceptions or indicators complicates the relationship between prices and monetary policy transmission, though the outcome may be socially desirable. Third, the presence of administered interest rates, even in segments of a financial system, could hold back appropriate adjustments in real rates as a sequel to changes in the policy rates.
The administered interest rates do occur in different forms, instruments and magnitudes but these could be, to some extent, monitored. What is surprising, however, is that the financial market rates could also display somewhat inexplicable impervious behaviour and thereby, act as the source of nominal rigidities in the economy. Sometimes, it is described as a conundrum, or might I say "I do not know"?