Why a Central Bank E-Monitor?

Research has documented a non-trivial informational content of monetary policy press conferences “non-verbal communication” as extracted from voice tone and facial expressions analysis. Non-verbal communication can capture important information and adds an extra dimension(s) to what otherwise communicated via the more conventional channel such as text. This novel non-verbal communication channel has been shown to systematically move financial markets, affecting exchange rates, stock market and uncertainty (a selection of key research papers in the area has been added to the reference list below). Our CB e-monitor summarizes both non-verbal and verbal communication and gives a more complete picture of central bank communication.