In this framework, the Bank first examines the prospects for economic activity  BIS Review 120/2008  5  and prices for one to two years ahead and assesses whether the economy will follow a path of sustained growth with price stability in the most likely scenario. This is policy assessment under the "first perspective."
Then, the Bank assesses the risks considered most relevant to the conduct of monetary policy. This is policy assessment under the "second perspective." I would now like to outline the Bank's current assessment based on this framework which forms the basis for the conduct of monetary policy.