Introduction of a new framework for the conduct of monetary policy Following the latest MPM, the Bank announced the introduction of a new framework for the conduct of monetary policy, with a view to ensuring the transparency of its policy conduct given the shift from the quantitative easing policy to an interest rate policy.
Under the quantitative easing policy, the Bank conducted monetary policy in line with a commitment based on the CPI. The commitment was unprecedented in that it linked the conduct of monetary policy directly to a specific economic indicator, namely, the CPI.