Fiscal policy needs to accelerate the green transition In this environment, fiscal policy needs to remain in the driving seat when it comes to fighting climate change. Regrettably, many governments failed to use the past years of low interest rates to accelerate investments in greener and more sustainable energy carriers at a pace commensurate with the challenges we are facing.
Both core and total inflation are projected to move up to 2 per cent in 2010 as the economy moves back into balance. There are both upside and downside risks to the Bank's new projection for inflation; these risks appear to be balanced.