Taylor rule
A formula giving the “right” policy rate from inflation and the output gap.
Definition
A formula giving the “right” policy rate from inflation and the output gap.
Why it matters
Central banks set the cost of money and guard price stability: their decisions are among the most watched events in markets.
How to read it in the news
Read the statement and press conference as much as the decision: guidance on what comes next often moves markets more.
Notitia newsroom · education, not investment advice.