Why do more central banks release their decisions publicly?

More central banks choose to release their decisions publicly to minimize speculation about their monetary policy. By openly communicating their decisions, central banks can provide clear guidance on their policy intentions and rationale. This transparency is essential for stabilizing markets and the economy, as it reduces uncertainty among investors, businesses, and consumers.

When speculation is high, it can lead to volatility in financial markets. If market participants are unsure about the direction of monetary policy, they may react unpredictively to information, creating instability. By consistently announcing their decisions and providing insights into their economic outlook and decision-making process, central banks help ensure that expectations align more closely with their actual policies, enhancing the effectiveness of their monetary measures.

Public announcements also support a framework of accountability and trust in the central bank, fostering better communication with the public and financial markets. Such transparency helps the central bank manage expectations regarding inflation, interest rates, and economic growth, ultimately leading to more effective monetary policy.