If a central bank announces an inflation target, it:

Name: If a central bank announces an inflation target, it:
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Announcing an inflation target may require the central bank to sacrifice some control over interest rates because monetary policy affects both inflation and interest rates. To achieve the inflation goal, the central bank may have to adjust interest rates accordingly, but it may also need to consider other factors such as economic growth and financial stability.

If a Central Bank Announces an Inflation Target, It