RBA paper: News and interest rate expectations

The RBA Discussion Paper "News and interest rate expectations: A study of six central banks" analyses the effect of news relating to the expected path of monetary policy on interest rate futures. Results suggest that the impact of the RBA's communication policy is in line with other major central banks, the article says.

Central banks' transparency is in most respects much greater than it was a decade ago, and so central bank communication needs to be included as a potential source of news. We