In other words, we are taking our foot off the accelerator now to minimise having to use the brakes harder in future.
Figure 5 - Central bank policy rate projections (1-year forward 1-month overnight-indexed swap rates) % 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 01/2020  07/2020 United States  01/2021 Australia  Canada  07/2021 United Kingdom  01/2022 New Zealand  Note: these rates represent where market participants expect central bank policy rates to be in one year. Source: Bloomberg.