refer to this type of guidance as “Odyssean forward guidance.” Here the central bank commits to a longer duration of accommodative monetary policy than is generally anticipated by the markets and the public. This commitment to a longer accommodative monetary policy is needed to compensate for the period constrained by the zero lower bound.
We agree to accelerate fiscal stimulus for supporting economic growth, benefiting the savings from subsidy reforms in 2014. At Bank Indonesia, we also rebalance our policy mix. While interest rate cut was not possible at that time because of possibility of FFR increases, we have started to relax our macroprudential policy.