Monetary policy is dictated by Comoros's membership of the Franc Zone and is geared towards sustaining its currency peg to the euro. This restricts growth in the money supply and is an important source of price stability. The Banque centrale des Comores (BCC, the central bank) sets its policy rate in line with the euro overnight index average. Interest rates are expected to rise slightly in 2011-12 as the European Central Bank seeks to rein in inflation. In mid-2010 the BCC raised the reserve requirement from 25% to 30% as the entry of two new banks boosted liquidity. Further increases are unlikely over the forecast period.