Relatively early in the upswing, policy is tightened, but there is no discernible response because the upswing still has a good deal of 5  BIS Review 80/1997  -5-  Perhaps a more telling argument is that it is simply not sensible -- or even possible -- to ignore the cycle, unless a suitable “neutral” operating rule can be found for setting monetary policy.
We have consistently delivered on that commitment ever since the euro was launched. Over these last 13 years, inflation expectations have on average been at 1.9%. Thank you for your attention. 6  BIS central bankers’ speeches