BIS Review 103/2009  7  Some of these points can be illustrated in the context of the recent financial turmoil. Let us take the decision to increase rates in July 2008, 11 months after the turbulence began in August 2007.
Following the first increase in the cash rate, the Board has returned to the approach to forward guidance that it used prior to the pandemic. That approach is qualitative in nature with any forward guidance focused on the short term. We value the flexibility in that approach and, in future, will avoid communication that focuses on the calendar or is too specific.