Clear communication by central banks is vital to minimize economic, financial uncertainty – IMF

The International Monetary Fund (IMF) has asked all central banks to communicate clearly as part of efforts to minimize economic and financial uncertainty.

The Fund indicated that using separate tools to achieve monetary policy and financial stability goals can address multiple challenges at once.

“Clear communication by central banks is vital to minimize economic and financial uncertainty, and using separate tools to achieve monetary policy and financial stability goals can address multiple challenges at once,” the IMF tweeted on Tuesday.

It explained the recent turmoil in the banking sector and the challenges posed by the interaction between tighter monetary and financial conditions and the buildup in vulnerabilities since the global financial crisis.

The emergence of stress in financial markets complicates the task of central banks at a time when inflationary pressures are proving to be more persistent than anticipated, it added.

Smaller and riskier emerging markets continue to confront worsening debt sustainability trends.

Clear communication by central banks is vital to minimize economic and financial uncertainty, and using separate tools to achieve monetary policy and financial stability goals can address multiple challenges at once. #GFSR #IMFpublications pic.twitter.com/rCBJQEyi6Y

— IMF (@IMFNews) April 11, 2023

By Laud Nartey|3news.com|Ghana