ECB paper looks at role of uncertainty in central bank comms
Researchers use machine learning to study market reactions to BoE inflation reports
A working paper published by the European Central Bank suggests a new approach for analysing the effect of central banks’ announcements on interest rates.
In The long-run information effect of central bank communication, Stephen Hansen, Michael McMahon, and Matthew Tong examine data on market reactions to the Bank of England’s inflation report. The authors use machine learning techniques which they say allow them to “directly test whether the information which drives the different reactions is
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