Carry out a study to determine an approach of setting the Lombard rate to make it more predictable (in order to enhance stability of the short-term interest rates) while consistent with the monetary policy stance and ensuring that the facility is not abused.
Introduced at R4. Macroeconomic rationale: To reduce excessive volatilities in short term money market interest rates. At R5, Not met. With the decision to make more active use of a policy
rate in guiding monetary policy from 2017, the BoT proposes to link the Lombard rate to the policy rate. The focus now is in clarifying operational issues involved in the shift to interest
rate targeting. 