The design of a framework for the conduct of macro-prudential oversight as new policy function involves significant challenges, but also represents a unique opportunity for reinforcing the arrangements to safeguard financial stability.
Second, the two decisions-on fiscal and monetary policy-differ in another respect: the monetary policy decision states that the Bank of Israel must submit reports on the performance of monetary policy to the government and the public, inter alia explaining deviations from the inflation target and their policy implications. The Bank of Israel does this in the framework of its semi-annual Inflation Report.