rumours carry with them a destabilising effect and in some cases have the potential to degenerate into self - perpetuating or self - fulfilling events. the rumour effect can result into unintended losses or gains and people may suspect that there are some vested interests behind such rumours. needless to say, the media ’ s role will, on the whole, tend to be negative in this channel. the third type is the survey effect. it is common for the media to carry out opinion polls. these polls or surveys could have methodological and other problems in terms of reflecting the true picture. these surveys have a tendency of influencing the perception of markets and at times, the general public. in such a case, the contribution of the media would depend on the scientific methodology adopted, transparency of assumptions and objectivity in the presentation of results. adequate care is a pre - condition to ensure a positive effect through this channel. lastly, there is the interpretation effect. here the media tries to interpret the stand taken by policy makers or markets. the interpretation effect may be positive or negative depending on professional skills as well as commitment to objectives. responsibility and accountability would be key to ensure positive effect through this channel. it is my conviction that the media ’ s responsibility is not confined only to their shareholders or to their subscribers, but extends to a larger section of the public. it is therefore apparent that the challenges before the media are not less than those before the central bank. it is also fair to recognize that the media faces several dilemmas. there are always pressures to be the first to report – a race to be the number one and they also have several stakeholders to cater for. let me end with a quote from the late dr. i. g. patel, former governor of the reserve bank of india : “ communication is not just about transparency. it is also about education, guidance and steering this in the right direction. in this, the central bank can be an honest broker between government and the public and even the parliament ”. i thank you.

david opiokello : confidentiality and transparency – the challenge to bank of uganda and the media address by mr david opiokello, acting deputy governor of the bank of uganda, at the bank of uganda media workshop on confidentiality and the right to public information : central banking communications, kampala, 24 may 2007. * * * the chairpersons resource persons distinguished participants ladies and gentlemen, it is my pleasure to welcome you all to the bank of uganda media workshop on the theme “ confidentiality and transparency : the challenge to bank of uganda and the media ”. in the past, central banking was shrouded in secrecy and mystery. there was a tendency to keep the central bank out of the media and the media out of the central bank. recently, however, there has been greater visibility, transparency and a lot more communication. there are three reasons for this development : firstly, increased independence of central banks led to the need for publicly accountable conduct. secondly, the adoption of inflation targeting required greater public visibility and thirdly, a mandate to the central banks, either explicitly or implicitly, for maintaining financial stability in a world where the financial markets and their expectations matter. we are all aware that the access to public information act, to be discussed later in this workshop, gives ugandans the right of access to information in possession of the state or any of the state organs or agencies except where the release of such information may prejudice state security or sovereignty. information could also be withheld if the release of that particular information is likely to interfere with the privacy of any person. in the absence of the above two reasons, it is the people ’ s right to know and indeed the journalists ’ right to gather and publish information. the growing importance of communications by central banks is on account of their responsibility for maintaining financial stability – which goes beyond the conduct of monetary policy. there is an assumption that well informed market participants would facilitate, if not assure, an improved functioning of the markets and the central bank is in the best position to provide such useful information. however, whether providing information would result in shaping and managing expectations, and if so, whether it is desirable, are difficult issues. much has been said about the external communication of central banks in recent years and central bankers have reflected intensively on their external communication. transparency, candid explanations given to investors, savers, market participants, households and, to our fellow citizens are essential for central banks. it is probably fair to say that communication