Communication from the market to the Bank  It is generally agreed that there is much market information of a forward-looking nature that is extremely useful for monetary policy. Sometimes central banks will follow market movements which can provide information about the outlook that is independent of policy and that is crucial to monetary policy decisions.
Prices and interest rates incorporate all information available to the market, and therefore provide important signals about the future. True, there are times when the central bank may have information that is not in the public domain, but equally, many private sector institutions are privy to certain information, or may have superior information because of specialised research in a particular area.