| WASHINGTON, March 21
WASHINGTON, March 21 Central bankers should tell
markets what economic factors would induce them to raise
interest rates, rather than when rates might rise, the Bank of
England's chief economist, Spencer Dale, said Friday.
"Central banks should communicate what we know most about,"
Dale told a conference of economists at the Federal Reserve. "I
know I don't know what will happen to interest rates in the next
What central banks can say is what factors they will use to
judge the economy's readiness for higher rates, he said. Such
so-called forward guidance for rates is known to economists as
"We should communicate state-contingent guidance, because
that's what we know far more about than time-contingent
guidance," Dale said.
He was speaking in the very same room where Federal Reserve
Chair Janet Yellen on Wednesday suggested that U.S. interest
rates could rise in early spring 2015, "around six months" after
the expected end of the Fed's bond-buying program in the coming
Her comments, a departure from the rest of her remarks which
sought to give the kind of state-contingent guidance that Dale
advocated, sent bond and stock markets tumbling.
(Reporting by Ann Saphir; Editing by Leslie Adler)