We have not reached the ‘end’ of our policy rate space. We do not have stubbornly low or close to zero inflation. We are experiencing rising inflation rates. Inflation expectations, for the most part, are proving to be more responsive to current inflation outcomes than we would like, and less anchored around the midpoint of our target.
2  BIS central bankers’ speeches  As you move from one locality to another, you will discover that one approach is more viable than the other, depending on the economics of the locality itself. For other areas, it may be economically feasible to offer both approaches to the community.