with the aim of achieving the goal of 1 percent. The Bank will continue pursuing the powerful easing until it judges that the 1 percent goal is in sight, on the condition that no significant risk factors were identified. This refined guidance was state-contingent, linking to the maintenance of both the policy interest rate and asset purchases.
To restore the effectiveness of monetary policy, the authorities have had to adopt several unconventional measures of temporary nature. The general complexity of the art of forecasting inflation, coupled with heightened uncertainty in the aftermath of the financial crisis, calls for prudence and humility. Policy makers have to be wary when deducing real-time policy implications from inflation forecasts.