Here's Why Fed and BoE Liftoffs Will Probably Look Very Similar
The metrics for wage growth in the U.S. and the U.K. are lining up positively.
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Forward guidance as a concept had much to recommend it. The theory was that by communicating their thinking, central bankers would allow markets to more accurately price in the trajectory of interest rate hikes and through this, smooth the path to rate normalization.
The problem that they encountered was that transparency is not the same as clarity. Instead, it has proven to be synonymous with complexity.