A loosening of the monetary policy stance could then even lower inflation – and vice versa. There is thus a clear case for explaining our outlook for inflation and the economy to the public to prevent an unintended transmission of a monetary policy impulse.
Each deviation must be approved by a clear majority of the relevant decision-making bodies – in this case, the deposit guarantee scheme and the central bank. The finance minister must sign off a deviation in consultation with the president. This is intended to secure the financing of bank restructurings.