10  Mishkin (2007a). 2  BIS Review 95/2008  By establishing a transparent and credible commitment to a specific numerical inflation objective, monetary policy can provide a firm anchor for long-run inflation expectations, thereby directly contributing to the objective of low and stable inflation.
Resultantly, the benchmark KIBOR has also shown rationalization and 6-month KIBOR has registered a decrease of 61bp on a Y-o-Y basis and is currently around 10.0%, despite the increase in Discount Rate by 50bp. Banks have also been responsive on deposit side to the central bank calls.