The power of words: A content analytical approach examining whether central bank speeches become financial news

Becksndale Masawi, Sukanto Bhattacharya, Terry Boulter

Research output: Contribution to journalArticle

3 Citations (Scopus)


Few studies have examined the impact that central bank indirect intervention has on exchange rates. Efficient market theory predicts that new information within central bank communication will become a component of information used by currency traders. This study applies a novel methodology to examine whether information contained within Bank of Canada and the Reserve Bank of Australia communications does in fact get embedded within the information reported on the financial newswires. The primary data are speeches that are made public by the two central banks and from news as reported by Reuters from 1995 to 2009. Applying content analysis and an innovative use of information science theoretic measures, we demonstrate the flow-through of information contained within central bank communications to the information set used by traders.

Original languageEnglish
Pages (from-to)198-210
Number of pages13
JournalJournal of Information Science
Issue number2
Publication statusPublished - 20 Dec 2013
Externally publishedYes



  • Central bank speeches
  • content analysis
  • foreign exchange
  • information theoretic measures
  • text mining

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