central bank transparency

Central bank transparency refers to how openly and clearly a central bank communicates its policies, decisions, and economic outlooks to the public and financial markets. When a central bank is transparent, it provides timely information about interest rates, inflation targets, and economic assessments, helping people and businesses make informed financial decisions. Transparency promotes trust, reduces uncertainty, and can improve the effectiveness of monetary policy. It ensures everyone understands the reasoning behind policy actions, which can stabilize markets and support economic growth.