Quantitative Forward Guidance Through Interest Rate Projections

This research article assesses the effectiveness of quantitative forward guidance via interest rate projections from the Reserve Bank of New Zealand, Norges Bank, Swedish Riksbank, and Federal Reserve. It explores path predictability, credibility, redundancy, and consistency of interest rate forecasts, revealing their impact on market expectations and macroeconomic outcomes. The findings highlight the significance of central bank communication in managing interest rate expectations.