Typically, the monetary policy instrument, effectively the price of central bank liquidity, is directly set by the central bank. In view of limited control over long-term interest rates, central banks adopt a strategy to exert direct influence on short-term interest rates.
I find it quite normal and understandable that a person may come up to me in the streets of Čačak, Novi Sad or Belgrade and ask me why the National Bank of Serbia has only one objective and why this objective is “to achieve and maintain price stability” and not “to achieve growth and development, higher employment rates, exports, etc,” or why it is that the NBS needs to sterilize excess money and how it finances this sterilization.