Unlike the past, central banks now prioritise clarity in communication to manage expectations and minimise market disruption
Central banks misjudged early inflation warnings in recent years, after years of battling deflation after global financial crisis
Emerging markets like India have faced complex challenges, dealing with global spillover effects while maintaining macroeconomic stability
Climate change poses risks to both price and financial stability. In India, it could cause prolonged inflation, requiring difficult policy trade-offs
Technology has improved financial inclusion but has also introduced new risks, as seen in the recent US banking crisis due to trust erosion
Central banks must keep evolving, developing new tools to maintain stability and address emerging risks in an interconnected global economy