The Bank of Canada releases a summary of what happened at the meeting that will decide monetary policy from next year, after an International Monetary Fund (IMF) report suggested some ways to make banks more transparent about their activities. I plan to start.
The IMF says the Bank of Canada is “setting the high standard for transparency” in a new report reviewing transparency practices at central banks around the world.
The report also provided 10 recommendations to improve transparency, including “consider publishing a detailed summary of monetary policy deliberations by the Policy Board.”
This is similar to what is happening in the United States, where the Federal Reserve Board exists. publish meeting minutes regularly Two days of policy meetings just weeks after the decision was announced. This is to allow the public to better understand the rationale behind the pricing decision, including the views of those who may have disagreed with the final decision.
Recent Fed minutes revealed specific reasons why the bank was up 75 points, but not the widely expected 50 points. He made it clear that he believes another 50-75 percentage point rate hike is likely at the meeting.
The Federal Reserve also publishes what are known as “dot plots,” visual representations of expected interest rate levels at various points in the future. According to the latest dot plot, most policymakers believe the Fed’s rate will rise to near 5% next year.
The Bank of Canada’s statement on the interest rate decision date contained no such projections.
Banks welcome IMF findings
The Bank of Canada has said it has committed to publishing such summaries approximately two weeks after each interest rate decision beginning in January 2023.
However, unlike the Federal Reserve Board, the Summary does not provide attribution to individual board members and does not record votes as there are no votes in the bank’s deliberative process.
Following the report, the Bank of Canada said it welcomed the findings.
“Banks are always committed to increasing transparency,” the bank said. official statement“We will regularly assess and evolve our own practices, including through a comprehensive review of the monetary policy framework every five years, while also responding to feedback from external stakeholders and engaging the central banking community. It takes into account broader trends in