Based on high-frequency data for Norway and Sweden, we investigate to what extent explicit forward guidance from monetary policy makers, by means of publishing the path of expected future policy rates, affects the market yield curve. We summarise movements in the yield curve by two latent factors (the 'target factor' and 'market path factor'), which capture market participants' assessment of all relevant monetary policy communication made available on announcement days. We then show that information contained in the published interest rate path has a significant effect on the market path, and can explain up to 47% of the market path factor. Hence, we conclude that 'explicit' forward guidance in the form of publishing the interest rate path ...
We map ECB policy communications onto yield curve changes and study the information flow on monetary...
This paper conducts a comparative analysis of the performances of the forward guidance strategies ad...
Norges Banks’ views on future interest rate developments have often attracted considerable attention...
Based on high-frequency data for Norway and Sweden, we investigate to what extent explicit forward g...
Does the central bank practice of publishing interest rate projections (IRPs) improve how market par...
Does the central bank practice of publishing interest rate projections (IRPs) improve how market par...
In this paper, we use survey forecasts to investigate the impact of forward guidance on the predicta...
Our analysis suggests; they do not! To arrive at this conclusion we construct a real-time data set o...
This staff memo revisits the power of forward guidance with particular emphasis on the effectiveness...
The purpose of this article is to take a closer look at one of the most unconventional instruments o...
This paper provides an empirical assessment of the power of forward guidance at different horizons, ...
The publication of interest rate projections by central banks, a central bank’s own quantitative est...
Available online 15 August 2019The viability of forward guidance as a monetary policy tool depends o...
Many central banks in the world nowadays regard their external communication as an important tool to...
In this paper we assess whether forward guidance for monetary policy regarding the future path of in...
We map ECB policy communications onto yield curve changes and study the information flow on monetary...
This paper conducts a comparative analysis of the performances of the forward guidance strategies ad...
Norges Banks’ views on future interest rate developments have often attracted considerable attention...
Based on high-frequency data for Norway and Sweden, we investigate to what extent explicit forward g...
Does the central bank practice of publishing interest rate projections (IRPs) improve how market par...
Does the central bank practice of publishing interest rate projections (IRPs) improve how market par...
In this paper, we use survey forecasts to investigate the impact of forward guidance on the predicta...
Our analysis suggests; they do not! To arrive at this conclusion we construct a real-time data set o...
This staff memo revisits the power of forward guidance with particular emphasis on the effectiveness...
The purpose of this article is to take a closer look at one of the most unconventional instruments o...
This paper provides an empirical assessment of the power of forward guidance at different horizons, ...
The publication of interest rate projections by central banks, a central bank’s own quantitative est...
Available online 15 August 2019The viability of forward guidance as a monetary policy tool depends o...
Many central banks in the world nowadays regard their external communication as an important tool to...
In this paper we assess whether forward guidance for monetary policy regarding the future path of in...
We map ECB policy communications onto yield curve changes and study the information flow on monetary...
This paper conducts a comparative analysis of the performances of the forward guidance strategies ad...
Norges Banks’ views on future interest rate developments have often attracted considerable attention...