4  Examples of evidence-based policy  Let me give you an example from an area that we at the Bundesbank are involved in – financial market regulation. Last year, the G20 heads of state and government decided that the financial market reforms of the past decade should be systematically evaluated (FSB 2017).
Overall, then, we anticipate that long-term rates will rise as the recovery progresses and expected short-term real rates and term premiums return to more normal levels. The precise timing and pace of the increase will depend importantly on how economic conditions develop, however, and is subject to considerable two-sided uncertainty.