The expected falling trend in consumer price inflation should contribute to containing the inflation expectations of economic agents and thereby have a positive influence on price and wage-setting behaviour. This view is confirmed by bond yields, which indicate that financial markets expect inflation developments to be in line with the definition of price stability in the medium term.
Stephen S Poloz: The fourth industrial revolution and central banking Remarks by Mr Stephen S Poloz, Governor of the Bank of Canada, at “Changing Market Structure and Implications for Monetary Policy”, a symposium sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming, 24 August 2018.