Provision will soon be made for real-time on-line settlement of large transactions, and for the daily netting and settlement of smaller payment transactions done through the banking system. Efficient monetary policy in a market-oriented economy finally also requires well-functioning financial markets. The Reserve Bank therefore has a vested interest in the development of the money, capital and foreign exchange markets.
Forecasts made under such an assumption should better reveal the participants' views of the underlying structural parameters of the economy – the best possible tradeoffs between inflation and output stability in the short run and longer-term price and output trends – than would be made assuming an externally derived path for rates, such as the path implicit in market interest rates.