Forward Guidance

Early Wednesday, the Bank of England, led by Governor Mark Carney, formally adopted forward rate guidance. The BoE became just the second major central bank to adopt such policies, following Ben Bernanke of the Federal Reserve in tying rate hikes and other policy initiatives explicitly to economic...

While most Americans were eating hot dogs and celebrating the birth date of the United States, the Bank of England and the European Central Bank took unprecedented steps in launching forward guidance in their interest rate decisions. The move sent shares higher and the pound and the euro...