We feel that this is a more informative approach than assuming a constant or market path for interest rates – which may present an interest rate path that is inconsistent with the Bank’s price stability mandate. Forward guidance – avoiding potential pitfalls This transparent approach comes with potential costs. First, research highlights that increased transparency, in some cases, can be detrimental to the economy.
Accordingly, the annual percentage change in underlying trimmed mean and headline inflation rates are expected to be 10.6 and 9.0 percent in 2003, respectively. Thank you for your attention. BIS Review 14/2003  3