Nevertheless, a central bank may often experience a substantial recognition lag prior to its becoming clear just what the latest economic figures imply for policy needs. Indeed, even after a central bank implements a policy response, its critics may still argue that it recognized the situation incorrectly.
A central bank may frequently experience a considerable delay in understanding the implications of new economic data for policy decisions. After implementing a policy response, its detractors might still assert that it misinterpreted the situation.