Two important questions therefore arose: first, how BIS Review 82/2000  4  could the central bank specifically take into account the importance of money and, more generally, liquidity, for monetary policy making?
There are signs of an acceleration in internal costs of production, and measures of medium- to longer-term inflation expectations also now indicate tensions. It was to address the increased risk of second-round effects on wage and price setting and to reaffirm a commitment to restoring price stability that the Governing Council decided on 3 July to raise rates to 4.25 per cent.