IMF Tasks Central Banks to be Explicit on Risks, Commuinicate Effectively on How Policy Responds to Changing Conditions

The International Monetary Fund (IMF) has tasked central banks to be explicit about risks and communicate effectively on how policy responds to changing conditions. In a blog post titled 'Rethinking Central Bank Communication in an Uncertain World', the Fund noted that in a world of frequent shocks, central bank communications should anchor expectations by explaining the policy framework and reaction function. This approach aims to help the public understand monetary policy objectives.

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