Monetary Policy Transparency
This section discusses the Central Bank of Armenia’s commitment to transparency and accountability in its policymaking, emphasizing the importance of clear communication in building public trust and ensuring effective decision-making.
As a socially responsible public institution, we strongly advocate for transparency and accountability as foundational and guiding principles. We firmly believe that clear and effective communications are the principal means through which the central bank can achieve transparency in its policymaking. Moreover, transparency serves as a cornerstone for central bank accountability. Together, transparency and accountability serve as important means for assuring general public’s confidence and trust in CBA’s monetary policymaking process, and giving incentives for the institution’s staff and leadership to do the right thing.
Under our policymaking framework, known as FPAS Mark II, we strive to transparently communicate how and why we make our monetary policy decisions. We emphasize the importance of focusing our communications on the key risks and uncertainties that are most relevant for policy. We do not publish a baseline scenario (which represents the central bank’s best guess of the “most likely” future), because this provides a false sense of assurance in the forecast of an unknowable future. Instead, we frame our discussions about the economy and policy around what we believe to be the most important risks and how policy might respond to these risks in the event that they materialize. This provides better insight into how and why we make decisions. It also provides the public with the necessary information to understand the key risks and issues facing the economic outlook, and be better-informed as they make financial and economic decisions.
To ensure the openness and transparency of our policy actions, we regularly publish a wide range of documents that provide detailed information on the current macroeconomic developments of our economy, the implementation of monetary policy, and other important topics.
Analytical Transparency
Transparent communications with the public also means being open about the data and analysis that support policy discussions and decisions. To this end, with each monetary policy report, we publish the relevant analytical datasets used in our policy analysis. This includes timely and comprehensive data on different economic indicators, financial markets data, data on the developments of our key trading partners and other relevant statistical data used in our analysis.