Central Banks and rate change signals

[Nut]

Hi all

When central banks change rates naturally they issue a statement, but do they also electronically signal the change via a specific instrument? If yes then does anybody know which instrument.

I am particularly interested in the UK and USA

Thanks in advance

 

[Rhody Trader]

Hi all

When central banks change rates naturally they issue a statement, but do they also electronically signal the change via a specific instrument? If yes then does anybody know which instrument.

I am particularly interested in the UK and USA

Thanks in advance

I'm not sure what you mean about the electronic signal.

In the case of the US Fed, the rate that most folks watch is the Fed Funds rate, which really is only a target rate. The Fed operates in the Fed Funds market to try to keep the actual rate in line with its target by adding or withdrawing reserves.

I don't know specifically about the BOE, but I believe they do basically the same thing.

 

[Nut]

Thank you for the response. I was hoping to place something in my quote board coupled to an alarm so that when the bank changed the rate I get an instant notification.

Nut

 

[Rhody Trader]

If you can get quotes for Fed Funds you might have something, but they are a "traded" market like any other. That means they will move, sometimes well away from the target rate, so having an alert would likely provide many false signals.

Really it comes down to paying attention to the wire when the central bank meets because that is almost always going to be the only time rate moves happen.

 

[Nut]

Once again thanks for the response. I think the answer closes this thread.

Stay lucky, trade well

 

[PeterPG]

I know the bank of england like to suprise the market. I remember January they hiked and shocked almost everyone.