Operation of monetary policy

This article covers the three months/ram mid-February to mid-May 1983.

The growth rates of the monetary aggregates, which had been subdued during the winter, increased sharply during the three months under review. Other indicators did not, however, support the impression of an easing of monetary conditions conveyed by the aggregates. In particular, the exchange rate appreciated on balance by some 3¾% in effective terms, reversing part of the earlier depreciation; the twelve-month rate of retail price inflation continued to fall, reaching 3.7% in May; and real interest rates remained positive.

Operation of monetary policy