With many central banks grappling with the zero lower bound on policy rates not only as a theoretical possibility but as a problem encountered in practice, research on forward guidance has made considerable progress.
HICP inflation is projected to ease from an average of 2¾ per cent this year to about 2¼ per cent next year. It is, nevertheless, important to discuss some downside risks to the outlook, always bearing in mind that they are risks rather than forecasts. Some risks reflect factors or events completely outside the control of domestic policy makers.