Although central bankers can use predictable policy actions and the forward-looking nature of financial prices to their advantage, they must also be mindful of the potential market reactions to policy actions that are not fully anticipated or that may be misinterpreted. This, too, is an aspect of monetary policy that may have become more prominent given the evolution of financial markets in recent years.
We have rightly made a strong commitment to address the most serious fault lines exposed by the crisis, to reduce significantly the probability and severity of future ones. In short, we would like to ensure that this never happens again.