In extreme cases, it may be impossible to announce a path if, in fact, no explicit path can be determined in a reasonably precise and reliable manner. 4 The current economic situation provides a relevant example both with regard to the uncertainty surrounding the lending policies of banks and with regard to the functioning of the wage-and-price setting mechanism in some countries.
5  •  A second factor is the difficulty to reach agreement about the appropriate path of future policy rates in the decision-making committee, especially in periods of heightened uncertainty and perceived structural change.