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Monetary Policy
What is Monetary Policy?
Monetary Policy is the set of measures adopted by the Central
Bank or other monetary authority that is aimed at influencing
the availability and cost of money and credit, with a view to
achieving specific national goals such as a low, stable and
predictable rate of inflation and sustained economic growth.
The Bank of Guyana Act sets out the Bank's principal objectives
as follows:
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Within the
context of the economic policy of the Government the Bank
shall be guided in all its actions by the objective of
fostering domestic price stability through the promotion of
stable credit and exchange conditions, as well as sound
financial intermediation conducive to the growth of the
economy of Guyana.
Instruments of Monetary Policy
The Bank of Guyana utilizes two instruments in the conduct of
monetary policy. These are:
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Reserve
Requirements.
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Open Market
Operations.
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