IMF Urges Central Banks to Clearly Communicate Policy Risks
Ndubuisi Francis in Abuja Given the high degree of uncertainty globally, the International Monetary Fund (IMF) has tasked central banks to be explicit about risks, with the goal of reflecting
The International Monetary Fund (IMF) has urged central banks to communicate policy risks more clearly in a rapidly changing global environment, according to a new blog post. The IMF argues that in a world of frequent and faster-moving shocks, central bank communications should help the public understand monetary policy objectives while explaining how policy may evolve as economic conditions change.
This shift in focus from forward guidance to explaining policy responses to changing conditions is aimed at reflecting the degree of underlying macroeconomic uncertainty accurately.
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