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Framework guidance helps ECB monetary policy comms – Lane

Approach appears to have made rate expectations more sensitive to economic news, says chief economist

Philip Lane
Philip Lane
www.junosnowdon.co.uk

Framework guidance and a clear explanation of the reaction function have enabled the European Central Bank to communicate monetary policy more effectively, the bank’s chief economist has said.

In a speech on November 11 at the Bank of England Watchers’ conference in London, Philip Lane said framework guidance had been outlined in the ECB’s 2021 monetary policy strategy statement. This, he said, had committed the bank to basing rates decisions on “an integrated assessment of all relevant factors

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