2 What are the key scientific principles for monetary policy communication? To think about what kind of central bank communication is desirable, let's begin by considering some key scientific principles regarding the objectives of monetary policy and the benefits of central bank transparency.
This assessment will be based on three criteria: convergence, confidence, and resilience Convergence: looking into the medium term, headline inflation should be well on track toward reaching levels below, but close to, 2% Confidence: Governing Council will need to have confidence that the convergence path is likely to materialise sustainably Resilience: sustained adjustment in the path of inflation will be maintained even without additional net asset purchases There is growing confidence that these criteria will be attained, yet patience, persistence and prudence are necessary: Patience: as it takes time for underlying price pressures to build up Persistence: the pick-up in inflation still needs support from the monetary policy stance Prudence: global and domestic uncertainties counsel prudence in the adjustment of the monetary policy parameters Once the Governing Council decides that sustained adjustment is taking place, net asset purchases will end in line with our forward guidance.