of ideas, as w ell as feedback and evaluation of their performance. extensive use of the w ebsite also allow s for w ider and continuous access to information and external contributions and commentary. the bank also finds that research and publications, as w ell as participation in w orkshops and seminars, help to project the quality and content of the bank ’ s w ork, w hich also engenders credibility and integrity of the sources of policy analysis and decisions. ladies and gentlemen, allow me to end here and i w ould be happy to continue the dialogue as you make observations, comments and ask questions.

of policies w ould be contractionary. the converse is true, w here sustained low and falling inflation, depressed economic grow th and credit demand should engender expectations of expansionary or accommodative monetary policies. therefore, in this environment of w ell - informed expectations and trust in the stabilising capacity and potency of instruments arsenal of the authorities, there is less risk of market overreaction to the path of economic indicators. indeed, economic agents might take stabilising and policy reinforcing decisions. consequently, once a policy - setting institution has built up integrity and reputation, markets and economic agents generate belief and respond accordingly because the institution consistently does w hat it says it w ill do in given circumstances. i w ill now illustrate, and indeed reinforce, how communication is evolving w ith respect to tw o areas of macroeconomic policy formulation in botsw ana. you w ill appreciate, that in the areas of monetary policy and exchange rate policy, there is ongoing improvements and clarity relating to institutional setting, policy framew ork and parameters, instruments and decision - making cycles and dissemination platforms. in my view such developments have greatly improved understanding and efficacy of these policies. regarding monetary policy, the bank of botsw ana has now entrenched a price stability objective of 3 – 6 percent, w here the institutional set - up entails six pre - announced meetings in a year, of the monetary policy committee that assess developments, economic outlook and make a policy decision. a media briefing, and a statement announcing the policy decision and related background information follow each meeting. the annual monetary policy statement and its mid - term review serve as the anchor for dissemination of the monetary policy framew ork, policy analysis and guide for expectations on economic and policy outcomes. in this regard, aw areness of institutional arrangements for consistency, promote necessary the the policy framew ork, decision - making integrity and and transparency that foster efficacy of monetary policy. in essence, economic agents are able to anticipate, as w ell as respond to policy action. in addition, markets are more aligned to the policy stance. we, therefore, view the maintenance of a transparent and accountable monetary policy and the related communication contributing to sustained attainment strategies, of the as inflation objective. the exchange rate policy is also much more transparent. it is now clear to the market that w e have a fixed exchange rate, albeit in a craw ling band arrangement, pegged 55