An independent central banks is not a state within a state and, in a democracy, it needs to explain its monetary policy. By explaining its decisions in an understandable way, it strengthens public confidence in its ability to fulfil its task of ensuring price stability. This trust is the most valuable asset that a central bank has. Second, communication can also make monetary policy.
There is also some remaining uncertainty about China’s exchange rate policy. Elsewhere, risks are posed by the upcoming “Brexit” vote, ongoing pressures from refugee flows into Europe, and challenging conditions for emerging economies such as Brazil, Russia, and Venezuela.