Sometimes monetary authorities, even under inflation targeting, must respond to these shocks by going outside the price stability band for a short period. For example, the ECB has held its short-term interest rate at a low level for a significant period even though inflation has been slightly above its target ceiling most of that time.
Ladies and Gentlemen: Third, the CBK mandate of financial stability where the overarching goal is to promote existence of strong banks. Without strong banks, we cannot talk about long term and sustainable finance. In this regard, CBK has adopted a flexible risk management framework for the banking sector, which can accommodate, among other areas, the management of environmental and societal concerns.