Operational reform has not impacted longer term rates, BoE working paper says
Reserve averaging and reserve targets reduce volatility in overnight rate
A working paper published by the Bank of England finds "limited support" for prioritising the reduction of volatility in the design of central banks' frameworks.
Matthew Osborne in Monetary policy and volatility in the sterling market analyses the effect reforms on the bank's operational framework from 2006 onwards have had on overnight rates.
Despite his "encouraging" findings that reserve averaging and reserve targets – alongside interim reforms and communications prior to implementation –
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