As the effects of monetary policy are transmitted first of all via the financial markets, it is extremely important that the appropriate monetary policy be communicated to market participants in a lucid manner. On occasion, speculation of various kinds arises about the future conduct of monetary policy in financial markets.
Market expectations thus have the potential to become extremely unstable in the future as the end to the unprecedented monetary easing approaches. To prevent the emergence of this kind of instability, the Bank will endeavor to offer a lucid explanation of its assessment of economic activity and prices as well as the thinking behind its conduct of monetary policy.