If they do not recognize structural changes and depend too much on monetary policy, excessive easing could result in the accumulation of economic and financial imbalances. Second, I would like to refer to the division of roles between two policy tools; namely, conventional and unconventional monetary policy.
Although I expect that core inflation will drift down, I recognize that achieving further reductions in inflation may take time. In the near term, the recent rebound in prices for gasoline and other petroleum-based goods is likely to put upward pressure on the costs of many non-energy goods and services.