For example, Bank staff recently published an alternative scenario in which the economy’s potential output grows faster than projected.17 We are also focusing our efforts on designing policy rules that are more robust to the types of uncertainty we encounter every day. Strengthening the policy framework will support not only sound decision making, but also transparency.
If you want to understand why policy actions were taken and what actions might be in store, you need to understand both the Bank’s base-case projection and how the Bank has factored uncertainty into its policy decisions.