Russia's Central Bank Wants You to Believe
A Russian national flag flies above the headquarters of Bank Rossii, Russia's central bank, in Moscow, Russia, on Friday, Dec. 11, 2015. Russia's central bank left its benchmark interest rate unchanged for a third consecutive meeting as a slump in oil prices triggered a new bout of ruble weakness, raising the risk of faster inflation.
Andrey Rudakov/BloombergWhen central bankers start making predictions about what they're going to do in the future, reality often has other plans.
Just ask Bank of England Governor Mark Carney, or Federal Reserve Chair Janet Yellen. Recent attempts at so-called “forward guidance” -- telling the public how interest rates will evolve in the future -- have arguably caused more confusion than clarity when shifts in the economy forced officials to change their plans.