Measure (2): forward guidance All four central banks have adopted forward guidance: this refers to a communication strategy undertaken by central banks to provide information to the markets and the public on their future monetary policy stances.
Of the four, the Federal Reserve, the ECB, and the BOE apply forward guidance mainly to their respective short-term policy interest rates – the operational target for monetary policy – and provide guidance to the markets and the public about how long they expect to keep the current low interest rates.