The reason for this is that inflation expectations are now considered to play a central role in the transmission process of monetary policy, as it has become evident that expected future inflation is a crucial determinant of actual future inflation. Some observers see this as absolutely critical.
Michael Woodford, for example, a highly renowned US-based researcher, even put it as follows: “Not only do expectations about policy matter, but, at least under current conditions, very little else matters.” In other words, steering inflation expectations has now become an important – or even the most important – lever for central banks in pursuing price stability.