Policy impact widely gauged by macro and market indicators

Policy Impact and Effectiveness

Policy effectiveness is commonly judged by developments in macroeconomic and market indicators, according to the Monetary Policy Benchmarks 2025.

95.7% of respondents rely on macroeconomic indicators to assess policy effectiveness.
82.6% consider market indicators as a guide.
15.2% use other yardsticks, the least applicable gauge.

Respondents also reviewed policy-making frameworks, with most using a combination of indicators to evaluate policy impact.

Policy effectiveness tends to be judged on developments in macroeconomic and market indicators.

Author's summary: Policy impact is gauged by macro and market indicators.

Central Banking — 2025-10-28