As for the Bank’s outlook for prices, looking at the medians of the Policy Board members’ forecasts, the year-on-year rate of increase in the CPI (all items less fresh food) is projected to remain at 1.0 percent for fiscal 2015 due to the substantial decline in crude oil prices, but to reach 2.2 percent for fiscal 2016.
The enormous costs borne from the negative impact of the crisis, is a lesson which has forced central banks to rethink their monetary policy strategies and strengthen macro-prudential supervision and regulation, in aiming to avert the adverse impact of possible future crises.