Three dimensions of central bank credibility and inferential expectations: The Euro zone

Henckel, Timo; Menzies, Gordon; Moffatt, Peter G.; Zizzo, Daniel John

doi:10.1016/j.jmacro.2019.01.012

Cited by 3 publications

(3 citation statements)

References 46 publications

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“…Recent studies show that unconventional monetary policy actions have been associated with the reduction in disagreement about interest rate forecasts (Jitmaneeroj et al, 2019;Kool & Thornton, 2015). Finally, as the central bank aims to manage the private sector's expectations, the effectiveness of monetary policy depends on the credibility economic agents have in central bank's ability to achieve its objectives (e.g., Blinder, 2000;Cecchetti & Krause, 2002;de Haan et al, 2005;Dovern et al, 2012;Henckel, Menzies, Moffatt, & Zizzo, 2019). Central bank credibility is therefore crucial for the conduct of monetary policy and a stable macroeconomic environment (e.g., Bordo & Siklos, 2015;de Mendonça, 2007;Montes & Bastos, 2014).…”

Section: The Effect Of Monetary Policy Transparency and Central Bank ...mentioning

confidence: 99%

Do monetary policy transparency and central bank communication reduce interest rate disagreement?

Seelajaroen

Budsaratragoon

Jitmaneeroj

2019

Journal of Forecasting

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Yes. This study produces evidence that monetary policy transparency and communication policy of the Bank of England have information content in reducing disagreement about interest rate forecasts. Different from most extant studies employing the transparency index derived from official documents of the central banks, this study extends the literature by using a recently developed market-based monetary transparency index. Moreover, this study analyzes forecast disagreement in a multivariate perspective based on survey data of short-and long-term rates over short and long horizons. This study characterizes several patterns on forecast disagreement related to maturities of interest rates, forecast horizons, recessions, forward guidance, credibility, transparency, and communication policy. Interestingly, disagreement among the Monetary Policy Committee in policy rate decisions is associated with lower disagreement among professional forecasters on interest rate outlook, whereas neither announcement of changes in policy rates nor publication of inflation reports affects forecast disagreement. These results have important implications for monetary policymakers in managing market expectations of interest rates.

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Section: The Effect Of Monetary Policy Transparency and Central Bank ...mentioning

confidence: 99%

Do monetary policy transparency and central bank communication reduce interest rate disagreement?

Seelajaroen

Budsaratragoon

Jitmaneeroj

2019

Journal of Forecasting

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“…Customers refer to the principles of the Sharia board when speaking to people in their social networks, which creates awareness of these principles and generates positive word of mouth (Auf, Salleh, & Yusoff, 2016). Religiosity-based marketing strategies help to safeguard customers' investment in Islamic products, and providing guarantees makes banks more credible because a credible bank promises to build and maintain its transparency, reputation and independence (Henckel, Menzies, Moffatt, & Zizzo, 2019;Walsh, 2009).…”

Section: Religiosity-based Marketingmentioning

confidence: 99%

“…Similarly, credibility is becoming universally important for banks, academics and practitioners in attracting and retaining customers. In the banking system, credibility describes the compliance of well-articulated and transparent policies and principles, and a strong belief that a change in policy is actually implemented (Henckel et al, 2019).…”

Section: Credibilitymentioning

confidence: 99%

Customer Purchase Intentions toward Islamic Banking Products in Pakistan: A Study of Religiosity-Based Marketing

Ahmed

Zulfiqar

Haq

et al. 2020

Asian Economic and Financial Review

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This study evaluates the contribution of religiosity-based marketing to persuade customers to purchase Islamic banking products through credibility, word of mouth and building customer relationships. An adapted survey questionnaire was used to collect the data from 440 respondents through convenience sampling from Gujranwala Division, Pakistan. Structural relations were assessed by employing the PLS-SEM (partial least squares structural equation modeling) technique, and the results revealed the existence of a positive and significant relationship between religiosity-based marketing and the purchase intentions of customers. However, credibility does not contribute to purchase intentions, possibly because the credibility of commercial banks is yet to be established in Pakistan. Religiosity-based marketing has been tested for the first time to evaluate its effectiveness in influencing the purchase behavior of Pakistani customers of Islamic banking products. Furthermore, the attempt to validate the conceptual model by using responses from a Muslim country shows its potential to be replicated in other Muslim countries.Contribution/Originality: This study contributes to existing literature by assessing the role of religiositybased marketing in turning the purchase intentions of consumers toward Islamic financial products. Marketing strategies designed in line with these recommendations will help banks to maintain and improve their customer base through credible offerings, generating positive word of mouth and strengthening relationships with customers.

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Financial Institutions’ Governance Innovation and Credibility Strategy

Štrukelj¹,

Beloglavec²,

Zdolšek³

et al. 2022

Insurance and Risk Management for Disruptions in Social, Economic and Environmental Systems: Decision and Control Allocations W

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Three dimensions of central bank credibility and inferential expectations: The Euro zone

Cited by 3 publications

References 46 publications

Do monetary policy transparency and central bank communication reduce interest rate disagreement?

Do monetary policy transparency and central bank communication reduce interest rate disagreement?

Customer Purchase Intentions toward Islamic Banking Products in Pakistan: A Study of Religiosity-Based Marketing

Financial Institutions’ Governance Innovation and Credibility Strategy

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