By “yield curve” I mean the term structure that we observe in the money market for overnight indexed interest rate swaps (OIS), as well as the curves in the markets for the national sovereign debts, which traditionally constitute an important benchmark for pricing credit to the entire economy.
Global interest rates and domestic monetary policy A related question is: does the fact that we are concerned about the impact of Fed normalisation mean that we simply follow global interest rates in conducting monetary policy? The simple answer is: no.