Consequently, on March 31, 1995, the Bank introduced a new system to utilize the guiding of money market rates as a means of monetary policy which is, by itself, as significant as the official discount rate. This is a system whereby the Bank publicly announces its policy for market operations after it has been approved by the Policy Board.
Under this arrangement, once the central bankers have been appointed and recognised by the political authority, they act in accordance with their own instincts and conscience, without seeking or receiving instructions, taking the decisions which they consider best suited to the attainment of the objectives assigned to them by the European treaty and by national law.