Central banks, monetary policy and interest rates a) Market participants, including finnacial institutions,...

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Finance

Central banks, monetary policy and interest rates

a) Market participants, including finnacial institutions, fund managers and corporations, must understand monetary policy setting impacts on economic activity and business cycle. A central bank will typically implement monetary policy settings in order to achieve certain economic outcomes over a business cycle. Briefly describe the intermediate target for monetary policy in Singapore and gives examples of different economic indicators that may give an insight into the future stages of a business cycle. (5 marks)

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