As I mentioned a moment ago, a challenge for policymakers is that key variables that are essential inputs to monetary policy—such as u*, r*, and expected inflation—cannot be observed directly and must be inferred from observed data.
The Review should give serious consideration to adding such an instrument to the toolkit. Governance 4/7  BIS central bankers' speeches  The current macro-prudential MoU gives decision making powers to the Governor, but commits the Reserve Bank to prior consultation with the Minister and Treasury. The development of any new instruments is undertaken in consultation with the Treasury and also includes public consultation.