The central bank will adjust its monetary policy interest rate settings from time to time if the following variables move significantly out of line with the levels that the bank considers appropriate.

Please consider the following variable movements and provide the likely interest rate adjustment (up or down):

Excessive upward pressure of domestic currency in the foreign exchange market	Up, N/A, or Down
The rate of inflation is significantly above its target range	Up, N/A, or Down
The rate of GDP growth is subdue	Up, N/A, or Down
Current account is in significant deficit	Up, N/A, or Down

Answer rating: 100% (QA)

Here are the likely interest rate adjustments based on the variable movements 1 Excessive upward pre... View the full answer