Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298320 
Year of Publication: 
2023
Series/Report no.: 
Working Paper No. 127
Publisher: 
Università Cattolica del Sacro Cuore, Dipartimento di Economia e Finanza (DISCE), Milano
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
Subjects: 
Central bank communication
firm expectations
high-frequency identification
survey data
JEL: 
D84
E52
E58
Document Type: 
Working Paper

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