Central banks need stronger communication in turbulent times: RBI governor

Even short-term forecasting has become a challenge due to pandemic, says Shaktikanta Das

Central banks must strengthen their communication about policy in "turbulent times" like the coronavirus pandemic and use alternative indicators and data sources, said Reserve Bank of India governor Shaktikanta Das on Wednesday.

“Central banks on their part are both producers and users of statistics for policy actions as well as for assessing the outcomes of their actions,” he said at the central bank’s Statistics Day Conference.

"They also need to establish stronger communication of their policies and actions in such turbulent times. Thus, central banks too had to cope with all these challenges by focussing on alternative indicators and data