Turning to the monetary analysis, broad money (M3) growth increased to 4.3% in February 2019, from 3.8% in January. Looking through some volatility in monthly flows, M3 growth continues to be backed by bank credit creation, notwithstanding a recent moderation in credit dynamics. The narrow monetary aggregate M1 remained the main contributor to broad money growth.
The link from resource utilization to inflation provides a major channel through which monetary policy settings influence inflation: Adjustments in the policy interest rate bring about changes in resource utilization, which then influence current and expected inflation. Inflation forecasting and commodity price shocks The economic outlook is the prime focus of monetary policy.