Expectations play key role in policy transmission – BoE paper

Bank of England
Daniel Hinge

Interest rate expectations and term premia are equally important to the transmission of monetary policy to the yield curve, research published by the Bank of England finds.

Iryna Kaminska, Haroon Mumtaz and Roman Sustek note earlier research found only a “miniscule role” for interest rate expectations, with most of the effect occurring through term premia. This is a problem, as expectations typically play a large role in central bank models, the authors note.

In the working paper, they use

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: