This weakening might be partly the result of a mismeasurement of slack (because of structural changes in the labour market) or an unstable relationship between slack and inflation over time. At the same time, this effect could also result from discrete parallel shifts in the Phillips curve.
Despite the recent accelerating pace of growth, we will need to maintain our accommodative 1/3  BIS central bankers' speeches  monetary policy stance for some time, in view of the continuing high uncertainties as to the growth path and the not so great inflationary pressures on the demand side.