The more complex is the mandate of the central bank, the more difficult as well as more important is the communication. Illustratively, if the mandate of the central bank is either inflation targeting or exchange rate targeting (as in a currency board arrangement) then the objective of central bank is amply clear to the public.
While this is likely to lead to some increase in unemployment, the unemployment rate is expected to remain low by international standards. Third, in the housing market, increases in interest rates, which up to the middle of last year had risen from low levels, have clearly reduced the affordability of housing over the past two years.