Bank Of England - Monetary Policy and Forward Guidance

by Eduardo Petazze
Increase transparency of how, when and why monetary policy is formulated is a highly positive aspect, in recent times, being taken by major central banks. It not only reduces the volatility of market movements, to reduce the possibility of unexpected decisions by the market, but also opens the opportunity for an interesting exchange of opinions. The following links to documents BoE are enrolled in these principles Forward Guidance Monetary policy trade-offs and forward guidance - August 2013 - pdf, 48 pages (It is a state-contingent, instead of a time-contingent, as a pledge from rate-setters to support the recovery) Minutes of the Monetary Policy Committee meeting held on 3 and 4 September 2013 - pdf, 10 pages Conditional guidance as a response to supply uncertainty speech by Ben Broadbent pdf, 12 pages Technical appendix - pdf, 8 pages Monetary policy and forward guidance in the UK a speech by David Miles pdf, 15 pages Monetary strategy and prospects - Speech by Paul Tucker pdf, 6 pages Postscript: In our paper "The UK employment situation" estimates that the unemployment rate will be located at 136K above the unemployment rate of 7% in 1Q2015. In our paper "UK - House Prices Situation" analyze the possibility to generate a bubble in the real estate market in the UK However, the difficulties and risks to the objectives of monetary policy, it is just a statement or association to a contingent state of affairs preferable to a time commitment. Also see: The usefulness of forward guidance - Speech by Benot Cur, ECB Slides pdf, 4 pages