For example, in the current  4  BIS Review 4/2008  context, monetary policy judgments should be made based on the careful analysis of the following issues, which will be incorporated in the future assessment of the economy and prices: (1) whether the slowdown is temporary and the economy can be expected to return to its growth path, or whether there is a possibility that it will last longer than expected; (2) whether price rises could exert a negative influence on the economy, leading to future downward deviations in the economy and prices; and (3) whether, on the contrary, price rises could push up future prices through their influence on households' inflation expectations or firms' price-setting behavior.
It goes without saying that forecasts always entail uncertainty, making it all the more important to assess their likelihood as well as the risks of upward or downward deviations. We are determined to conduct appropriate monetary policy with the aim of achieving sustainable growth under price stability while carefully assessing our projections, their likelihood, and upside and downside risks.