As a part of prudent management of external liabilities, the RBI policy is to keep forward liabilities at a relatively low level as a proportion of gross reserves and the emphasis on prudent reserve management i.e., keeping forward liabilities within manageable limits, was highlighted in the RBI’s Annual Report, 1998-99.
2  For a description of previous approaches to decision making at the Bank see: Brash (2001), ‘Making monetary policy: a look behind the curtains’, remarks by Donald Brash, Governor of the Reserve Bank of New Zealand, 1 March 2001; RBNZ (2007), ‘Submission to the Finance and Expenditure Committee inquiry into the future monetary policy framework’.