The monetary programme (A methodological description)

The monetary programme – constructed on a quarterly basis in the NBH – is a crucial internal product of the decision making process. The programme evaluates the development of net financing capacities of different sectors and the monetary survey and gives a financial side story about the whole economy. This paper describes the method how the program is prepared with a particular focus on the consistency between financial side and income side variables. Besides interrelations between the main items of balance of payments, financial accounts and monetary survey statistics, the paper also presents how a medium term liquidity forecast is prepared based on the projection of the central bank’s balance sheet.