Since the start of 2015, we have conditioned our forecasts on the assumption that the cash rate moves broadly in line with the path implied by financial market pricing. •  To increase the Bank’s capacity to use full-system models, we have established a new Macroeconomic Modelling section within the Economic Analysis Department.
This has primary responsibility for generating model-based analysis to enhance the quality of our forecasting processes and policy advice. I should emphasise that this section will complement our existing forecasting processes, not replace them.