In all events, the central bank has to preserve its credibility, ensuring that expectations remain consistent with its declared policy objective. Comprehensiveness of the analytical framework A central bank, in its daily operations, has to filter an enormous amount of information.
It routinely seeks to define the state of the economy as new circumstances arise and evaluate their implications for the risks to price stability. As I tried to argue above, this is a highly demanding exercise, because shocks do not come about with labels and the economy is potentially always subjected to structural changes.