However, it is very likely that fixed investment in high-growth sectors, including those related to information technology services, will increase as corporate profits continue to recover. Moreover, the improvement in corporate profits will increase household income and this in turn is expected to boost private consumption.
BIS central bankers’ speeches  1  then turned to two less conventional policy tools to provide additional monetary accommodation. The first is forward guidance on the federal funds rate. By lowering privatesector expectations for the future path of short-term rates, forward guidance has reduced longer-term interest rates and raised asset prices, thereby leading to more accommodative financial conditions.