3 See Rice, Vehbi, and Wong (2018) for analytical work on uncertainty. 4 See the November Monetary Policy Statement, Box 1 for the results of our recent business visits. 4  Business uncertainty highlights the importance of forward guidance and transparency when considering and setting economic policy.
Even if the message isn’t one that businesses want to hear, decision makers in business appreciate clarity and certainty. In addition to the cyclical impact of uncertainty on business investment, there are also signs of a structural decline in business investment since the Great Financial Crisis.5 If business investment remains low, this has a negative effect on our long-term prosperity.