Inflation forecasts spanning the time horizon of the monetary policy transmission mechanism are the most important inputs for monetary policy decisions in an ITL framework. Inflation forecasts need to include both forecasts derived from quantitative models and qualitative judgements about how the factors which influence inflation, such as fiscal policy and the exchange rate, will evolve over the medium term.
Thus, we also highlight that these efforts are underpinned by sound digital governance, adequate risk management practices, and robust internal controls. 1/2  BIS central bankers' speeches  Given these developments, it is important for the internal audit function to reposition itself as a strategic partner in driving digital value.