Forward guidance could become trap for central banks
The U.S. Federal Reserve and the European Central Bank, but not the Bank of Japan, ended up being behind the curve in addressing rising inflation with interest rate hikes
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The U.S. Federal Reserve and the European Central Bank, but not the Bank of Japan, ended up being behind the curve in addressing rising inflation with interest rate hikes
TOKYO (Reuters) - Central banks risk being late in arresting inflation if they rely too much on forward guidance - a tool used to communicate the future path of monetary policy, a widely respected economist told policymakers at a Bank of Japan-hosted event on Wednesday. | 03:50am
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