The market revisions (red line) are generally good at anticipating changes to our 1-year ahead 90-day interest rate projection (blue line), which suggests that they understand the conditional nature of the forecasts and the Bank’s likely response (or ‘reaction function’) to new information.
22 C J McDermott, ‘Policy uncertainty from a central bank perspective’, Australian Economic Review,  March 2017 discusses how policy uncertainty, or ‘instrinsic uncertainty’, is reduced by having a clear policy framework and structure for decision-making. 23 Alan Greenspan in his often-quoted testimony to Congress in 1987.