BIS Review 75/2008  7  Macroeconomic projections and, in particular, the inflation outlook, are the key element of the monetary policy strategy referred to as “inflation targeting” or, more precisely, “inflation forecast targeting”. The Bank of England provides a classical example of this policy approach. Pursuing such a strategy principally provides a transparent decision rule for monetary policy.
I have also made it clear to the financial institutions that use of Danmarks Nationalbank’s lending facilities is not an acceptable solution for managing refinancing risk. I take this opportunity to repeat that message. Securities should only be pledged as collateral to Danmarks Nationalbank in connection with ordinary monetary-policy operations.