In the wake of financial sector reforms and opening up of the economy in the 1990s, appropriateness of the monetary targeting framework was questioned with the changing inter-relationship between money, output and prices. Accordingly, the Reserve Bank switched over in 1998-99 to a multiple indicator approach.
4  BIS Review 13/2004  Thirdly, it is vital to set up a system for policy coordination so that the opinions of the central bank are reflected in the supervisory policies of the financial supervisory agency. Prudential supervision is closely related to monetary policy.