Seen from that perspective, the risks of acting too late outweigh the risks of acting too early. In sum, even when faced with protracted global shocks, it is still monetary policy that determines medium-term price stability. If we do not “surrender” to low inflation – and we certainly do not – in the steady state it will return to levels consistent with our objective.
No single strategy, set of governance arrangements, or operational practices will be right for every country. Cyber security issues now top the list of risks to watch.