Market analysts’ surveys indicate expectations of a slightly delayed lift-off. I don’t want to directly answer this question. But we try to judge if market expectations reflect fundamentals and if market expectations fit with our views. It’s a two way street: we learn from markets and markets learn from us.
Markets have a certain expectation about the end of the net asset purchase programme (APP). We try to see if this fits with the narrowing between the inflation objective and market indicators of inflation expectations. For example, I look at the gap between the objective of below, but close to, 2% and the 5-year/5-year forward swaps-derived inflation rate, which is now at 1.7 percent.