BIS central bankers’ speeches  1  Evidence shows that, for the most part, central banks have been doing well at keeping expectations anchored in a very challenging environment. Measured in this way, it is clear to me that our credibility is intact. But we won’t take false comfort.
Vigilance is required, because if long-term expectations shift away from the target, it can be very difficult to reanchor them. So, to understand why long-term interest rates are so low, we need to look at the two other components – expectations for real short-term interest rates, and the term premium.