ECB’s Nagel says a dot plot system is not desirable

Nagel spoke about the upcoming strategic review and said the ECB needs to improve how policy intentions are communicated but that a Fed-style dot plot system is not desirable.

I tend to agree with him on this, the dot plot has eroded Fed credibility rather than enhancing it. I think Fed forecasts are useful but not on rates because the rates dot is conditional on the economic forecasts.

This article was written by Adam Button at www.forexlive.com.