Monetary information and monetary policy decisions: Evidence from the euroarea and the UK

► Our contribution is to discuss the capability of models to predict discrete rate decisions. ► We find Interest rate predictions should be based on discrete models of interest rate decisions. ► We compare the predictive performance including different types of monetary indicators. ► Monetary indicators improve predictions of interest rates, even allowing for other variables. ► This is true for the Bank of England and the European Central Bank despite different emphases on monetary variables.