BOC to publish summaries on IMF nod
The Bank of Canada will start publishing detailed summaries of its monetary policy deliberations next year following a recommendation from the International Monetary Fund (IMF).
The move comes after the IMF released a report on Wednesday that reviewed the central bank's transparency practices.
The report said the Bank of Canada “sets a high benchmark for transparency,” but still included 10 recommendations to help it improve, including publishing a detailed summary of monetary policy decisions by the governing council.
“The (Bank of Canada's) monetary policy framework is comprehensive, transparent, and understandable, although there is room for greater transparency with respect to the policy deliberations,” the report said.
The Bank of Canada said it will produce summaries roughly two weeks after each policy meeting, starting with the Jan. 25 decision.
“We do expect it to provide a high-level summary of the issues discussed by Governing Council, as well as insight into the key points of focus in their deliberations on economic developments and the risks,” Jeremy Harrison, managing director of the bank's communications department, said in a statement.
“We also expect it will provide insight into the range of policy options that Governing Council may be considering at any given decision.”
The Bank of Canada has faced criticism in the past for not publishing minutes like the U.S. Federal Reserve, which the IMF said in its report is a practice considered the “golden standard” among inflation targeting central banks.
The Bank of Canada summaries will not provide attribution to individual council members and will not record votes because there are no votes in the bank's deliberation process.
The Bank of Canada also said it has agreed to improving transparency around its risk management and audit functions, as well as strengthening its public communication efforts.
“We know that by being transparent, we can help all Canadians understand what we are doing and why, and that's essential for their trust,” Bank of Canada governor Tiff Macklem said.
The Bank of Canada currently publishes a statement when it releases its rate decision, but does not provide a record of its deliberations. Four times a year it also releases its monetary policy report, which includes its latest forecast for the economy, alongside its rate decision.
The IMF report is part of a pilot project to evaluate transparency practices in central banking globally.
As part of the review, a team of independent experts met with staff and management from the central bank, as well as a range of stakeholders, which included academics, think tanks, parliamentarians, market participants and journalists.
Among the other recommendations was to communicate more frequently with the public using “plain language” to promote financial stability.