From forward guidance to framework guidance

From westpaciq.com.au

The three key themes emerging from this year's ECB Forum in Sintra were: • Greater flexibility in monetary policymaking, with central banks placing less emphasis on forward guidance and more emphasis on communicating the framework underpinning policy decisions. • The uncertain implications of AI, which has the potential to reshape productivity and labour market outcomes but is not yet evident in the data. • A growing focus on non-bank financial risks, as policymakers monitor the rapid growth of leveraged market participants, private credit and other sources of potential financial instability. The European ... (full story)