[1] It follows that a primary influence on the interest rate decision in any one meeting is the size of the gap between the prevailing interest rate and the assessed terminal rate. Second, at a tactical level, the exact calibration of the interest rate decision should also take into account the appropriate speed to close that gap.
Especially under conditions of high uncertainty, each of these factors can shift in a material way from one meeting to the next: first, there may be a revision in the projected terminal rate; and, second, the appropriate speed in closing the gap may accelerate or decelerate.