This policy measure aims to reduce uncertainty and provide further monetary easing effects under the zero lower bound of nominal interest rates, by clearly indicating future management of monetary policy. However, to get market participants to form expectations just as a central bank intended – namely, expectation management – is not an easy task.
Our discussions will be far reaching but we should try to organise them around two broad long-term themes – stability and consumer protection. A fundamental objective of the Central Bank of Ireland is to ensure “the stability of the financial system overall”.