Formulation and conduct of monetary policy for price stability In carrying out its responsibilities under increased independence, the Central Bank has to perform and be more accountable and transparent to the Parliament and the public. Before 2000, monetary policy was formulated for a year horizon and announced in the first quarter of each year.
The objective of monetary policy was broadly stated as that of providing sufficient liquidity for the non-mineral private sector to grow at a sustainable rate. Monetary policy was accommodative of fiscal operations of the Government and preoccupied with financing fiscal deficits, especially in the 1990s. The formal process involved the Governor presenting the monetary policy stance to the Bank Board for its approval.