Free Trial

MNI INTERVIEW:Flat Rates Fit With Data Dependence-ExBoe's Bean

(MNI) London

Ex-BOE Deputy Governor Charles Bean says policymakers can both signal flat-for-long rates and retain data dependency.

Policymakers can both make clear their preference for holding policy rates flat-for-longer and stick to the line that they are data dependent, former Bank of England Deputy Governor for Monetary Policy and LSE professor Charles Bean told MNI.

With central banks from the BOE to the Federal Reserve suggesting that they might hold rates at their peak for an extended period in a so-called “Table Mountain” approach, some including European Central Bank Executive Board Member Isabel Schnabel have pointed to a contradiction between committing to a flat rates stance whilst also promising policy will respond flexibly to incoming data.

Keep reading...Show less
570 words

To read the full story

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Policymakers can both make clear their preference for holding policy rates flat-for-longer and stick to the line that they are data dependent, former Bank of England Deputy Governor for Monetary Policy and LSE professor Charles Bean told MNI.

With central banks from the BOE to the Federal Reserve suggesting that they might hold rates at their peak for an extended period in a so-called “Table Mountain” approach, some including European Central Bank Executive Board Member Isabel Schnabel have pointed to a contradiction between committing to a flat rates stance whilst also promising policy will respond flexibly to incoming data.

Keep reading...Show less