If the prospects for achieving that desired outcome are too weak, the Governing Council will form a view on the degree of accommodation that is necessary to make that outcome less uncertain.
Working backwards, this exercise is designed to promote the level and shape of the yield curve that, according to past regularities, can be expected to deliver the requisite amount of stimulus, taking into account the endogenous adjustment of the whole spectrum of market conditions – including bank lending rates, corporate bonds, mortgages, as well as the foreign exchange rate – to the yield curve.