Factors causing positive and negative deviations in economic activity  Economic activity has so far been generally in line with the April projection. However, any kind of projection is subject to upside and downside risks. It should be noted that the following factors could cause positive and negative deviations from the baseline projection of economic activity.
If financial markets and monetary policy transmission function well, then forward guidance may well be preferable to the use of asset purchases by central bank. The forms of forward guidance differ among central banks. The Federal Reserve and Bank of Canada make announcements about future intentions.