Central banks, as also the markets and the media, presently take a highly serious attitude towards the form and content of communication on topical monetary policy issues, as what is told about interest rates is almost equally important as what is done with them.
Our considered view is that a policy target agreement should be drawn up that would be signed by the Minister of Finance and the Governor of the Reserve Bank to define precisely the coordinated effort needed to contain inflation in pursuit of the broader economic objectives of sustainable high economic growth and employment creation.