M3 growth remains vigorous, although it should be kept in mind that the current headline growth rate of M3 tends to overstate the underlying pace of monetary expansion. The flat euro yield curve at present encourages substitution from longer maturity assets outside M3 into monetary instruments, thereby raising M3 growth.
Transparency, good governance and independence will be the bywords of the MIC. The MIC will be run within a strict governance structure and in line with international norms. The Board of Directors of MIC will comprise an independent Chairman, the First Deputy Governor, the Second Deputy Governor, and two Non-Executive Directors.