To put it in a nutshell, the Bank will decide whether to terminate the policy by examining developments in economic activity and prices and judging whether the situation justifies asserting that the year-on-year rate of change in the CPI is registering zero percent or higher on a sustainable basis--in other words, whether the commitment has effectively been fulfilled as a whole.
5 The apparent diminished responsiveness of inflation to resource slack is known in economic research as a flattening of the short-run Phillips curve. For evidence of this flattening in the slope of the Phillips curve in the United States and abroad, see, among others, Simon, Matheson, and Sandri (2013); Blanchard, Cerutti, and Summers (2015); and Bank for International Settlements (2017).