To this end, the Bank has taken a number of measures to increase its level of policy transparency in recent years. Third, uncertainty does not equal indecision. It is true that the notion of a zone generated by uncertainty can create a degree of tolerance for small shocks.
At the same time, a large shock— or, perhaps, an accumulation of smaller shocks—can tilt the balance of risks to projected inflation and prompt policy action. In early 2015, for example, ToTEM was showing how the oil price shock would play out and the downside risk to projected inflation became unacceptably large.