Or should the forecast be based on an interest rate path that is more arbitrary, such as a constant interest rate path or one that is related to market expectations inferred from forward interest rates. Others question whether the central bank should reveal the forecast’s assumed interest rate path at all.
Perhaps the greatest fear preventing most central banks from publishing the best assessment of its future interest rate path is that the public will assume the projections will be taken as a commitment to that path rather than a projection influenced by the evolution of the economy.