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Should central bankers consider pitfalls of making declarative statements?

In recent times, central bankers have stressed the need to be nimble, humble even. Recent mistakes warrant some humility

RBI Governor Shaktikanta Das
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RBI Governor Shaktikanta Das | Photo: Bloomberg

Daniel Moss | Bloomberg
India’s monetary boss is so certain he will be raising interest rates again soon, he called it a “no-brainer.”  The only things missing from the forecast were the dates and magnitude. That’s how specific the prescriptions from policy makers around the world have become. Long caricatured as dour mandarins who like to hedge their bets, central bankers have discovered the power of declarative statements. They would do well to consider the pitfalls. 

As frank as he sounds, Reserve Bank of India Governor Shaktikanta Das is on the opaque end of rapidly evolving central bank communications. The urgency of the battle

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First Published: May 26 2022 | 8:32 AM IST

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