For example, if inflation does not moderate or rises further this year, then, in my view, the policy rate will probably need to move well above 4 percent. Alternatively, if inflation suddenly decelerates, then, in my view, the policy rate might peak at less than 4 percent.
I believe it would be helpful if regulators discussed the necessary changes with rating agencies and other market participants. Such discussions could lead to a higher degree of transparency, including the assumptions underlying the ratings as well as methodologies used or minimum requirements for rating quality.