19  As with asset purchases, the Federal Reserve has not been alone in using forward policy guidance. The Bank of Canada, for example, announced in April 2009 its intention to hold the overnight policy at 25 basis points through the second quarter of 2010; this conditional guidance was subject to the bank’s assessment of future inflation trends.
The Bank of Japan has long provided forward guidance linking policy to economic developments. In March 2001, for example, the Bank of Japan committed to maintain its policy rate at zero until Japanese consumer prices stabilized or exhibited a year-on-year increase.