But, and this is our third criterion for a sustained adjustment, if we were to firm policy by scaling back the stimulus provided, that inflation path would likely stall and relapse. The projected path of inflation remains conditional on very easy financing conditions, for which monetary policy plays a key role. Conclusions In conclusion, let me return to the sequencing issue.
Communication about the intentional horizon of net asset purchases and expected future path of the policy rates is a key component of the policy strategy that started in 2014. The reason is simple and, once more, has to do with instrument complementarity.