As our statement indicates, we plan to undertake a thorough public review of our monetary policy strategy, tools, and communication practices roughly every five years. - 14 References Aaronson, Stephanie, Tomaz Cajner, Bruce Fallick, Felix Galbis-Reig, Christopher Smith, and William Wascher (2014). “Labor Force Participation: Recent Developments and Future Prospects,” Brookings Papers on Economic Activity, Fall, pp. 197–275, https://www.brookings.edu/wpcontent/uploads/2016/07/Fall2014BPEA_Aaronson_et_al.pdf.
Looking around the world, the evidence is very clear that low inflation countries have low interest rates and high inflation countries have high interest rates. In the extreme cases, such as Sweden, inflation is so low they even have negative interest rates. Sweden’s repo rate, for example, is currently at -0.5 per cent.