Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/185512
Authors: 
Detmers, Gunda-Alexandra
Karagedikli, Özer
Moessner, Richhild
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 7314
Abstract: 
Every monetary policy decision by the Reserve Bank of New Zealand (RBNZ) is accompanied by a written statement about the state of the economy and the policy outlook, but only every second decision by a published interest rate forecast. We exploit this difference to study the relative influences of qualitative and quantitative forward guidance. We find that announcements that include an interest rate forecast lead to very similar market reactions across the yield curve as announcements that only include written statements. We interpret our results as implying that central bank communication is important, but that the exact form of that communication is less critical. Our results are also consistent with market participants understanding the conditional nature of the RBNZ interest rate forecasts.
Subjects: 
monetary policy
forward guidance
interest rate forecasts
JEL: 
E43
E44
E52
E58
G12
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.