Taking uncertainty into account underscores the fact that the objective of price stability must be set over the medium term. Even more important is that monetary policy credibility rests on a sound footing  4  BIS Review 66/2006  and that inflation expectations are firmly anchored, making it unnecessary for monetary policy to respond to every fluctuation in inflation.
In the last few years, one of the focal areas for both practitioners and researchers of monetary policy has been the question of policy transparency, in other words the effectiveness of communication. Monetary policy transparency means how well the public is aware of the central bank's monetary policy intentions and the issues on which the next interest rate decisions will depend.