Banque de France's Le Lorier says good communication can ‘substitute' for rate decisions

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Statements backed with credibility can exert a strong influence on interest rates well beyond those directly controlled by central banks, Anne Le Lorier, the first deputy governor of the Banque de France, writes in the forthcoming issue of Central Banking journal.

She points to the European Central Bank's (ECB) promise to "do whatever it takes" to save the euro in 2012 and its adoption of forward guidance a year later as "striking examples" of the potential effectiveness of central bank communic

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