Wunsch sceptical on forward guidance

Pierre Wunsch
Photo: National Bank of Belgium

Forward guidance is ill-suited to dealing with a volatile environment of above-target inflation, said Pierre Wunsch, governor of the National Bank of Belgium (NBB).

Committing to future policy actions based on inflation’s evolution may also limit monetary policy options and restrict the European Central Bank (ECB) to a set of actions it may not want to follow through with when the time comes.

“Forward guidance works best in a world where everything is evolving in a very gradual way,” said

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 info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

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

.