Scenario analysis widely used to assess risk but communication varies
Most central banks produce multiple forecasts to illustrate policy risks, but fewer than half publish them
Scenario analysis is a common tool used to support monetary policy decisions, but fewer than half of central banks publish the alternative forecasts that they produce, the Monetary Policy Benchmarks 2025 find.
Benchmark data shows 89.4% of the 47 central banks that supplied data on this issue use scenario analysis in the monetary policy-making process.
Scenario analysis is typically used to explore risks around the baseline forecast, helping policy-makers set policy to reduce the risk of extreme
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