Therefore, negative policy rates are not a reliable policy to make the exchange rate more favourable to domestic exporters. In addition, negative DFRs should not be seen as a zero sum game as the boost to growth which they provide benefits all jurisdictions via trade spill-overs. ECB staff finds supportive empirical evidence for the empowering complementarities of our measures.
Forecasts for inflation (and often for other key macroeconomic variables), the assumptions on which the forecasts are based and the extent of uncertainty surrounding the forecasts are, to varying degrees, spelled out. A few central banks even publish a future interest rate path – albeit one heavily conditioned by assumptions which are almost certain not to be realised, for one reason or another.