In addition, a strict monetary rule also protects the central bank against political pressure. But such a rule also prevents the central bank from making mistakes which inevitably result from the attempt to seek constantly to examine all available information for its relevance and to make it usable for discretionary decisions.
They should be able to understand complex financial products and should be equipped with the knowledge and skills to assess risks and make informed decisions about the suitability of financial products to their situation. A well-functioning consumer protection regime provides effective safeguards for retail financial services consumers while empowering consumers to exercise their legal rights and fulfil their legal obligations.