Template-Type: ReDIF-Paper 1.0


Author-Name: Federico Di Pace
Author-X-Name-First: Federico
Author-X-Name-Last: Di Pace

Author-Name: Giacomo Mangiante
Author-X-Name-First: Giacomo 
Author-X-Name-Last: Mangiante


Author-Name: Riccardo Masolo
Author-X-Name-First: Riccardo
Author-X-Name-Last: Masolo
Author-Email: riccardo.masolo@unicatt.it
Author-Workplace-Name: Università Cattolica del Sacro Cuore
Author-Workplace-Name: Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore



Title: Do firm expectations respond to Monetary Policy announcements?


Abstract: We study whether firms’ expectations react to the Bank of England’s monetary policy announcements by
comparing the responses to the Decision Maker Panel (DMP) survey filed immediately before and after a
Monetary Policy Committee (MPC) meeting. On the one hand, we find that firms’ expectations and uncertainty
about their own business for the most part do not respond to high-frequency monetary policy surprises.
On the other hand, announced changes in the monetary policy rate induce firms to revise their price expectations,
with rate hikes resulting in a reduction in price expectations and the uncertainty surrounding them. 
Length: 22
Creation-Date: 2023-02
File-URL: http://dipartimenti.unicatt.it/economia-finanza-def127.pdf
File-Format: Application/pdf
File-Function: First version, 2023
Number: def127
Classification-JEL: D84, E52, E58. 
Keywords: Central bank communication, firm expectations, high-frequency identification, survey data.
Handle: RePEc:ctc:serie1:def127