Sentences with phrase «tool for central banks»

There is no doubt that press conferences over the last few years have become an important tool for central banks to communicate their monetary decision effectively.

Second, maybe Mr. Poloz actually doesn't think that forward guidance is an effective tool for central banks.

Not exact matches

The federal government and the banks hold considerable sway over the housing market, of course; the central bank's benchmark rate is a clumsy tool for trying to moderate volatile real estate markets.

In his paper, economist Ricardo Reis put forward a new way for the Fed to pay banks returns on the money they keep at the central bank, a tool that could potentially put the Fed's goal of keeping inflation at 2 % on autopilot.

To sum up, once interest rates reach very low levels, the central bank still has meaningful tools that it can deploy in its pursuit of its inflation target: offering forward guidance to financial markets to enhance policy effectiveness, large - scale asset purchases, funding for credit, and pushing short - term interest rates below zero.

Higher - than - expected inflation is also a potential risk for emerging markets where central banks have less sophisticated policy tools than the Fed for combatting higher inflation.

According to the CME's FedWatch tool, Fed Funds futures traders are pricing in about an 85 % chance of a rate hike at the central bank's June meeting, so the scope for a recovery in the greenback may be limited, especially with two more NFP reports and CPI readings ahead of that meeting.

If Greece slides towards exit, even if the impact is adequately contained by the European Central Bank's (ECB's) monetary and liquidity tools, we could see the scope and pace of the drive for deeper integration accelerate.

Higher - than - expected inflation is also a potential risk for emerging markets where central banks have less sophisticated policy tools than the Fed for combatting higher inflation.

Monetary Policy Experiments As investors substitute real capital assets for currency and government bonds, central banks find that manipulating interest rates becomes a less effective tool for managing the economic cycle.

However, the central bank is still hesitant on allowing cryptocurrency trading as explained by the chairman of State Duma Committee for Financial Markets, Anatoly Aksakov, «The central bank is against the legalization of this type of digital currency, since in this case, citizens can start actively investing in crypto - tools, not taking into account possible risks.»

A new digital currency built for central banks is designed to make it easier for more people to use two powerful tools: real - time settling and cash.