Rather than pursuing different policy stances depending on the exigencies of the day to meet the expectations of different pressure groups, it is best to consistently pursue policies with a precisely defined objective that best serve society as a whole in the medium and long-term. There is a general tendency to believe that the Bank of Mauritius is not concerned with growth and employment.
A very recent study by Bank of Italy economists finds that the medium- and longterm inflation expectations in the ECB’s Survey of Professional Forecasters are now much more susceptible to negative surprises to current inflation than they were in the past. This is a finding that confirms the one that our researchers had already obtained based on inflation expectations derived from inflation swaps.