2  BIS central bankers’ speeches  Rule versus discretion As the Reserve Bank has started explicitly targeting overnight interest rate as the operational objective with the instrument of policy repo rate, there are relevant questions those arise: How that interest rate should be determined? Should it broadly follow a rule or should it be based on the central bank’s discretion?
However, Bosnia and Herzegovina, as a sovereign country, has established its first Central Bank (the Central Bank of Bosnia and Herzegovina) in 1997, with a mandate guaranteed by the Constitution to implement monetary policy throughout the entire country under the currency board arrangement.