For the chart, see Sveriges Riksbank (2015). BIS central bankers’ speeches  guidance will play less of a role in monetary policy after liftoff than it has during the past few years.
Policymakers’ behavior is sometimes summarized as a reaction function, which can be an algebraic description of how the interest rate is set – for instance, a Taylor-type rule in which the federal funds rate reacts simultaneously to the rate of inflation and expectations of inflation as well as to the rate of unemployment and expected changes in the level of unemployment.