BanRep's Blog: Central Bank Transparency and the Case of Colombia
Central bank transparency refers to the clear and open communication of key information to the public by monetary policymakers. This includes the dissemination of data, forecasts, and decision-making processes that affect the economy. Transparency reduces the information gap between what monetary policymakers know and what businesses, investors, and consumers understand. In this way, central bank transparency helps businesses and consumers to make better-informed decisions and enhances the effectiveness of monetary policy transmission. Additionally, it strengthens accountability, ensuring that central banks remain aligned with their goals of achieving and maintaining low and stable inflation, and fostering long-term potential output growth.
