This is for two reasons. First, they are what a public agency should do in a democratic society. Second, and just as importantly, regular explanation and clear resolve about price stability help ensure that the public’s inflation expectations remain “anchored” – that is, consistent with ongoing price stability.
Anchored expectations make the job of monetary policy easier, and create the room to be flexible in accepting fluctuations in the actual inflation rate. With anchored expectations, such fluctuations will not undermine public confidence that price stability will be maintained over the medium term.