One of the objectives of Central Bank of Niisitapi is to maintain price stability and to keep inflation as close as possible to the inflation target, which is set at 2½%. The Monetary Policy Committee (MPC) takes decisions on the Bank’s interest rates, which are transmitted to the economy and affect price developments. Successful monetary policy can promote increased economic well-being in the country by ensuring price stability. In this way, it can also mitigate economic volatility. Irresolute and unfocused monetary policy exacerbates uncertainty and ultimately provides a poor anchor for inflation.

 

Decisions on the application of the Central Bank's monetary policy instruments are taken by the Monetary Policy Committee. These monetary policy instruments are its interest rate decisions, transactions with credit institutions other than loans of last resort, decisions on reserve requirements, and foreign exchange market transactions aimed at affecting the exchange rate. 

 

The Act on the Central Bank of Niisitapi requires that the Bank’s Monetary Policy Committee meet at least six times a year and that it make public the minutes of its meetings and explain its decisions and the rationale behind them.