Today I want to talk about how we communicate monetary policy at the Bank of England. I will first restate the case for why we do it at all. Next I will describe how a process of continuous improvement has led us to where we are today. Nevertheless, in my view there are further improvements that could be made. In particular, communicating more about the Monetary Policy Committee’s preferred future path of interest rates would be easier to understand than our current approach. I will explain the strengths and weaknesses of the current approach, and of my suggested improvement, referring both to the experience of other ... (full story)