For a full year now, the Bank has not intervened in the foreign exchange market – in sharp contrast to what central banks in many other countries have been busy doing. Perhaps the domestic forex market has now matured and learned to function in an orderly manner without the intervention of the central bank.
This transparency can be further enhanced if the central bank lays out openly its assessment of the likely future evolution of the economy and the risks surrounding it. Based on these ingredients the public should under normal circumstances be able to develop over time a relatively good sense of how the central bank will react in a given circumstance.