Sentences with phrase «credibility of the central bank»

The improved credibility of the central bank's commitment to keep inflation low and stable should, in turn, allow it to deliver better inflation outcomes with fewer short - run costs to economic growth and employment.

Among the explanations that have been put forward are the increased credibility of central banks in controlling inflation (inflation rates remain below 3 per cent across the developed world), the low level of official interest rates in the major economies reflecting low inflation and the continuing weakness in some economies, a glut of savings on world markets particularly sourced from the Asian region, and changes to pension fund rules in some countries which are seen as biasing investments away from equities towards bonds.

Central bankers prefer to have the public, the investor class, and the holders of institutional wealth believe in the credibility of their central banking skills and their ability to manage their respective currencies.

Not exact matches

And then the credibility that central banks have worked so hard to build since the double - digit interest rates of the 1980s would unravel.

After years of downward forecast revisions that strained the central bank's credibility, the Fed finally settled in 2016 on expectations that maybe the economy's growth rate would not exceed 2 %, having been permanently affected by the Great Recession, slowed by changing demographics, or a combination of the two.

The Bank of Canada issued a statement clarifying that Carney did not violate any conflict - of - interest rules, but even the appearance of politics mixing with monetary policy could damage the hard - won credibility and independence the central bank has established over the past couple of decaBank of Canada issued a statement clarifying that Carney did not violate any conflict - of - interest rules, but even the appearance of politics mixing with monetary policy could damage the hard - won credibility and independence the central bank has established over the past couple of decabank has established over the past couple of decades.

To some extent, this shift has been possible because of the increased credibility of the inflation - targeting central banks.

In part this reflects the starting point of many central banks that adopted inflation targeting: they generally had a poor inflation history and low credibility with the public and financial markets.

I think our board, although unusual amongst other boards, there are very few if any other central banks that have this kind of a board, but in our country, for this kind of filter to be applied to the decision process, I think adds to the credibility, to the legitimacy that the whole process has in the eyes of ordinary people and that's very important.

Sudden Destruction Of Central Bank «Credibility.»

Several managers said that deploying helicopter money had a poor track record and would have little or no credibility with financial markets who would just see it as a sign that central banks had run out of ways to stimulate growth.

That marks an important shift for a central bank whose credibility had been threatened and was seen at risk of mimicking the Bank of Japan's long, losing battle with deflatbank whose credibility had been threatened and was seen at risk of mimicking the Bank of Japan's long, losing battle with deflatBank of Japan's long, losing battle with deflation.

Moreover, reversing the direction of policy would hardly be helpful for central bank credibility as the central banks around the world who raised rates and then were forced to reverse themselves have discovered.

Our analysis also confirms that inflation expectations play a major role in the inflation process, pointing to the importance of central bank credibility.

He argued that measures to bolster the eurozone's credibility, including cuts to spending and making the European Central Bank the lender of last resort, are not long - term solutions.

Central banks play an integral role in market economies by maintaining the stability and credibility of national currencies used in those economies.