Central bank signals could be impacting natural rate – BIS paper

The Bank for International Settlements, Basel
The Bank for International Settlements, Basel
Photo: Ulrich Roth

The signals central banks send to the private sector and the information they receive in return could be enough to explain the decline in the natural rate of interest, research published by the Bank for International Settlements finds.

Phurichai Rungcharoenkitkul and Fabian Winkler describe a “hall of mirrors” in which nothing in the real economy changes, but interest rates fall nonetheless. The natural rate or “r-star” refers to the interest rate associated with full employment and output at

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.

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

If you already have an account, please sign in here.

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: