The Impact Of Central Bank Communication On Interest Rate

Since the nineties of the twentieth century,there is an important trend that central bank monetary policy change from a secret operation to open and transparent way.The main performance is central Banks continue to strengthen the communication with financial market and the public.Central bank communication is the process of disclosing monetary policy goals,monetary policy strategies, economic forecasting, future monetary policy intention and other relevant information to relevant subject, Of course also include seeking the message was misunderstood by the market.Through successful communication can enable to guide market expectations and improve the effectiveness of monetary policy effectively.In all key elements of influence on the effectiveness of monetary policy, this paper bases on the perspective of central bank communication. By examining theinfluenceof the central bank communication on SHIBOR to observe and study if it has the strength of monetary policy tools.Discussing and summarizing international experience of the central bank communication represented by the fed in order to get inspired for communication practice in China.In the first place,this paper combs the essential theoretical foundation of the central bank communication,including the definition of concept,theoretical support for the central bank communication, the impact mechanism of central bank communication on interest rate expectations, etc.And then,this dissertation deals with China central bank communication and international experience of the central bank communication represented by the fed to analyze communication way and the specific communication effect in practice, and sum up the experience of its practice and enlightenment for our country. Finally, using EGARCH model to empirical analysis of the central bank’s communication practice in China, and on the basis of normative analysis and empirical analysis, put forward feasibility suggestions for our country central bank communication.