Workshop held by Centre for Economic Strategy and German Advisory Group on Central Bank Communication
On April 18 the Centre for Economic Strategy and experts from the German Advisory Group conducted a workshop on central bank communication as a tool for shaping market participants‘ expectations. The event was opened by Ms. Yildiz Görtze, head of the department at the Federal Ministry for Economic Affairs and Energy, who acknowledged the significant progress of the recent years‘ reforms in the Ukrainian financial sector.
Dr. Cyrus de la Rubia, chief economist of the German HSH Nordbank and lecturer at the Frankfurt School of Finance and Management was the main speaker in the workshop. As an outspoken expert in the field of central bank communications, he stressed the importance of clear communication and explanation of monetary mechanisms.
„If the country has an inflation targeting regime, as in Ukraine, the central bank has to communicate a lot. It is necessary not only to inform about changes in the discount rate, but also to explain how the transmission mechanism works, that is, how the change in rates affects inflation and economic activity.“, said Dr. de la Rubia.
Clearly stating that the central bank can no longer remain a silent institution, he argued for concentrating on explaining changes in the discount rate as the main instrument.
In his presenation, you can find more about best practice in discount rate communication: Whatever it takes: central bank communication as an effective monetary tool?