In this respect, policy-makers may also be concerned that frequent revisions of a previously announced policy path may weaken the public’s confidence in their forecasting ability or in their commitment to follow through. In particular, policy-makers may hesitate to reverse the direction of such a path, e.g.
from an accommodative to a restrictive stance and this could lead to the implementation of a policy path that does not take fully into account new, incoming information and is therefore sub-optimal. There are some factors and risks that call for great caution to be exercised in respect of any pre-announcement of future policy intentions.