The main reason for these changes is that, compared to when the last strategy was agreed in 2003, disinflationary pressures have become more acute. The need for a clearer target had become self-evident and a perception that the “close to but below” objective was asymmetric may have contributed to the decline in inflation expectations and the persistence of low inflation over the last decade.
In such a disinflationary environment, we want to make clear that we will take forceful action to respond to inflation below our target (as well as, of course, inflation that was above the target). We will tolerate small deviations in either direction over short, transitory, periods to ensure the smooth functioning of the economy.