Forward guidance definition

Forward guidance in monetary policy means providing some infor- mation about future policy settings. In recent years, the Federal Reserve, the Bank of Canada, the European Central Bank (ECB), and the Bank of England have used different forms of forward guid- ance. The forward guidance by these central banks was introduced in the special context of a binding lower bound for the policy rate. It has been used as a way of implementing more expansionary policy when the policy rate has been restricted by a lower bound.
View Source
Forward guidance lecture at the annual meeting of the Stanford Institute for Economic Policy Research, February 12th 2013, Stanford, US. Princen, Sebastiaan, and ▇▇▇▇▇ ▇▇▇ ▇▇▇▇. 2016. Paradigm formation and paradigm change in the EU’s Stability and Growth Pact. European Political Science Review 8 (3): 355-375. ▇▇▇▇▇, ▇▇▇▇▇ ▇., ▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, and ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇. 2010. How to analyze political attention with minimal assumptions and costs. American Journal of Political Science 54(1): 209-228. ▇▇▇▇▇, ▇▇▇▇▇▇. 2013. Philosophy of Economics: A Contemporary Introduction. New York: Routledge.
View Source

Examples of Forward guidance in a sentence

  • Forward guidance is a type of central bank communication about the likely path of future monetary policy and helps manage public expectations.

  • Forward guidance is a form of strategic communication and can also be a powerful regulatory instrument when applied by a credible central bank (▇▇▇▇▇▇ and ▇▇▇▇▇▇▇ 2014).

  • Forward guidance by RBA Governor ▇▇▇▇▇ ▇▇▇▇ flagging no increase in the ‘cash’ rate, “until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2–3 per cent target band”, is not enough – clarity on whether Australian domiciled and regulated hedge funds are using borrowings from the Australian REPO market for relative value compression trades (siphoning the arbitrage between cash treasuries and futures or derivatives) is required.

Related to Forward guidance

  • DOL Guidance means the Department of Labor (DOL) Guidance entitled: “Guidance for Executive Order 13673, ‘Fair Pay and Safe Workplaces’”. The DOL Guidance was initially published in the Federal Register on August 25, 2016, and significant revisions will be published for public comment in the Federal Register. The DOL Guidance and subsequent versions can be obtained from www.dol.gov/fairpayandsafeworkplaces.

  • Commission Guidance means (i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements or requests of the Commission staff and (ii) the Securities Act.

  • Guidance means any guidance issued or updated by the UK Government from time to time in relation to the Regulations;

  • Uniform Guidance means the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which supersedes requirements from OMB Circulars A-21, A-87, A-110, and A-122, OMB Circulars A-89, A-102, and A-133, and the guidance in Circular A-50 on Single Audit Act follow-up. The terms and conditions of the Uniform Guidance flow down to Awards to Subrecipients unless the Uniform Guidance or the terms and conditions of the Federal Award specifically indicate otherwise.

  • SEBI ICDR Regulations means Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended;