This base-case projection reflects Governing Council's best judgment about the most likely outcome, based on a number of assumptions. Over the years, we have become increasingly transparent in describing our projections, and the underlying assumptions. This January, we will include in our Update projection tables on global economic growth – tables that previously had only been included in full Monetary Policy Reports.
We have provided more detail about how we see the economy unfolding, what forces might affect inflation, and what assumptions we have had to make about more volatile or uncertain variables. This, in turn, helps to explain the reasons behind our most recent decisions and provides some insight into possible future actions.