2 The macroeconomic situation worsened unexpectedly over the summer as the underlying impetus that we saw earlier in the year faded (Chart 5, rhs). This removed an important force behind the reflation scenario we had expected. The sharp fall-off in oil prices that began in late summer then added further disinflationary pressures, feeding also into core inflation (Chart 5, lhs).
Monetary policy provides only a temporary bridge; it cannot act as a substitute for more fundamental reform and economic adjustment. 4  BIS central bankers’ speeches  Hopeful signs on the horizon Happily, there are positive signs on the horizon. The advanced economies seem to be getting their act together. The pre-conditions for a return to stronger growth are present in the United States.