Such forward guidance may even have destabilising 1  Fixed Income Money Market and Derivatives Association of India  1  effects on financial markets, especially if the subsequent policy actions are  at  variance  with  earlier  pronouncements. Central  bank  communication in the current context has thus become even more challenging than the actual policy actions.
Notably, however, financial markets in India have recovered from the lows that they fell to in the immediate aftermath of the Jackson Hole event. 4.