This is consistent with our understanding that macroprudential policy tends to be less effective in managing the top and bottom of cycles but rather as through-the-cycle policy to add to overall resiliency. 8  Next Steps Looking ahead, there are two main next steps on our macroprudential agenda.
As a result, as I described here last year, monetary policy can accompany the economic recovery.9 But the projected convergence remains reliant on the substantial cumulative impact of past policies, which are locked into the supportive financial conditions present today. Significant monetary policy accommodation is still needed to support the further build-up of domestic price pressures and headline inflation developments over the medium term.