Central banks need to reduce their dependence on bond market expectations, while safeguarding the smooth transmission of monetary policy, say former officials.

In a conference organised by the European Central Bank in Frankfurt today (December 18) to pay tribute to departing executive board member Benoît Cœuré, academics and policy-makers reflected on the bond market’s influence on monetary policy.

“It is important for central banks to build a culture that does not behave as paying too much