The advantages of our strategy have become more and more obvious over time. The strategy, with its medium-term orientation and its monetary pillar, ensures that longer-term risks to price stability – emanating from the well-documented close link between monetary developments and trend inflation – are duly taken into account in the conduct of monetary policy.
We need a yield curve that reflects active trade across a broad range of activities to serve as the sensitive and critical reference point to properly price risk and guide the market through changing conditions. We need competent and responsible market intermediaries and reliable and robust infrastructure that can provide the desired efficient access to the markets from wherever they are in our archipelago.