This has led Charles Goodhart to argue that forward guidance of this nature may be more useful over short periods than over longer time horizons. BIS central bankers’ speeches  3  The fourth approach is to adopt an exogenous market-based interest rate path. This path is also subject to change, and therefore prone to some of the same problems as the previous alternative.
The benefit of approaches that do not assume a constant interest rate is that they give some sense of the effect of policy on inflation. Our current approach is to assume a constant interest rate path in our core model, but the MPC is provided with alternative forecasts based on a market-based interest rate path.