Communication as a Monetary Policy Instrument: A Regional Perspective

On March 4, 2025, R. Kh. Mardanov, Member of the Board of Directors of the Bank of Russia and Head of the Main Branch of the Bank of Russia for the Central Federal District, delivered a lecture at the Moscow Metropolitan Yury Luzhkov University on the topic of "How the Modern Economy Works and Why Inflation Management is Important." The presentation generated considerable interest among students, who posed numerous questions to the speaker. One question focused on the specific monetary policy instruments employed by the Bank of Russia, beyond the key interest rate, to influence inflation. This article provides a detailed analysis of communication as a crucial instrument of the Bank of Russia's monetary policy, aimed at reducing inflationary expectations among economic actors and anchoring them at a consistently low level. The article elaborates on practical approaches in the Bank of Russia's communication strategies regarding monetary policy for various audiences, including businesses, the general population, and the academic community, particularly at the regional level. The analysis indicates that the Bank of Russia must continue to develop its communication with the public on monetary policy issues, paying particular attention to engaging with the academic community.

Bank of Russia communication, monetary policy instruments, anchoring inflation expectations