The minutes of those meetings simply recorded the Board’s view that “the Bank should neither close off the possibility of reducing rates further, nor signal an imminent intention to reduce rates further”. That phrasing was retained until the December minutes.
These shocks can come not only from the economic and financial sphere – the present stress test is a very powerful example – but also from the geopolitical sphere, or they can be triggered by natural catastrophes. Resilience is therefore essential; it is a necessary complement to sustainability.