The science and practice of monetary policy communication: the ECB experience

The European Central Bank outlined its approach to monetary policy communication, emphasizing that clear messaging is central to how it transmits policy decisions to markets. The article, framed as a review of the ECB's experience, ties communication practices to the bank's broader strategy, its toolkit and their market impact. It situates the discussion within the ECB's strategy review and asset purchase programmes, presenting communication as a policy instrument rather than a purely informational function. The piece is largely explanatory, offering no new policy decisions or figures. Investors will watch how the ECB applies these communication principles as it navigates future rate and asset-purchase decisions.