In current circumstances, where a strong labor market can be sustained without the emergence of high inflation, the conventional practice of reducing policy accommodation preemptively when unemployment nears its estimated longer-run normal rate is likely to lead to an unwarranted loss of opportunity for many workers.
In the run-up to the new decision, the Bank conducted a comprehensive assessment of the developments in economic activity and prices under "QQE" and "QQE with a Negative Interest Rate." The assessment includes a number of solid econometric analyses, showing the importance of interaction between policy analysis and policy action, as a basis for better policy making.