New forward guidance is “elemental” for ECB strategy, Lane says
Chief economist implicitly disagrees with Belgian governor’s criticism of new wording
The European Central Bank’s chief economist Philip Lane says its new forward guidance will play an “elemental” role in helping reach its inflation target.
Lane used a blogpost published on August 19 to stress the merits of its new strategy. In July the ECB adopted a symmetric 2% inflation target, aiming to end the eurozone’s very low inflation.
On July 22, in its first policy meeting with the new target, the ECB governing council modified its forward guidance. It now says the ECB will maintain
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 print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Operating framework
ECB caps remuneration rates for eurozone government deposits
New rate to also apply to non-monetary policy deposits, as ECB shrinks balance sheet
Campaigners call on BoE to make collateral rules greener
Report says bank’s use of fossil fuel assets as collateral is adding to climate risks
Sri Lanka considers move to single policy rate
CBSL plans overhaul of monetary operations and improved liquidity forecasting
Former NY Fed chief calls for overhaul of discount window
Dudley’s proposed changes include prepositioning collateral, cutting costs of secondary credit facility
Argentina adopts new policy rate
BCRA will use overnight reverse repo rate after halting auctions of Leliq bonds
Cambodia’s Serey calls for greater use of local currency
Governor says demand for the riel has improved over the years
Corridor, floor, other: are operating frameworks fit for the future?
Central banks are becoming aware that monetary operations have ramifications beyond setting short-term rates
BoE’s Hauser makes case against ultra-lean balance sheets
Even with central bank backstops, markets are not reliable liquidity managers, official says
Most read
- Bernanke calls for total redesign of BoE forecasting
- Taking stock of Bernanke: the original sin of forecasting
- Bank of England: time for fourth-generation forecasting tools?