For instance, a positive oil supply shock exerts downward pressures on prices but goes along with an expansion of real activity. Lower energy prices boost real disposable incomes. The  BIS central bankers’ speeches  3  downward drift of inflation away from the focal point of just below 2% would warrant additional accommodation.
But at the same time, a monetary policy stimulus would bring output further away from its sustainable level. Hence, in the case of supply shocks, like a decline in energy prices, a gradual response is appropriate both to avoid unnecessarily high volatility in real activity and to maintain price stability over a longer horizon.