So the inflation target and a flexible exchange rate work well together—indeed they reinforce each other—under our current monetary policy framework. Effective two-way communication In an increasingly interconnected world subject to all kinds of shocks and uncertainties, delivering a monetary policy that is credible and effective has become quite a challenge.
The Bank believes that greater openness and clear, two-way communication are important ways in which it can influence the economy, particularly at times of increased uncertainty. Put another way, our actions will likely be more successful if those we seek to affect—the financial markets and the general public—understand what we are up to and why.