Half of central banks use forecast errors to assess policy impact
Surveys of expectations widely used but surveys of trust and understanding are less common
Just over half of central banks that responded to the Monetary Policy Benchmarks 2024 use forecast errors as a measure of the effectiveness of monetary policy.
The result indicates that 48.9% of central banks do not view forecast errors as an important metric for assessing monetary policy, against 51.1% that do. Forty-five central banks answered this question.
Far more common (at 93.3% of respondents) is the use of macroeconomic indicators to assess policy, followed by market indicators at 80%.
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