Forward guidance is a communication tool used by central banks to inform the public, businesses, and investors about the likely direction of future monetary policy.
For example, if a central bank signals it will keep interest rates low for an extended period, people are encouraged to borrow and invest now. If it signals rates will rise soon, businesses and consumers can plan ahead.
In Bangladesh, while Bangladesh Bank doesn't formally use explicit forward guidance, it does provide indirect signals about future policy direction through monetary policy statements and other communications.