Bank of Canada to release summaries of rate decision meetings starting next year

The Bank of Canada will start publishing summaries of what happened at its meetings to decide monetary policy starting next year, after a report by the International Monetary Fund suggested some ways the bank could be more transparent about what she does.

In a new report that reviews the transparency practices of central banks around the world, the IMF says the Bank of Canada “sets a high benchmark for transparency.”

The report also provided 10 recommendations to improve transparency, including one to « consider publishing a detailed summary of the Governing Council’s monetary policy deliberations. »

It’s similar to what happens in the United States, where the Federal Reserve periodically releases the minutes of their two-day policy meetings several weeks after the decision is announced. This allows the public to better understand the rationale for pricing decisions, including the opinions of those who might disagree with the final decision.

Among the details of the Fed’s final minutes, the specific reasons why the bank rose 75 points and not the widely expected 50 were revealed. They also revealed that some members of the bank think another rate hike of between 50 and 75 points is likely the next time they meet. Statements from Canada’s central bank on the day of the rate decision never include such projections, or hint at how close they were to making a different decision than they announced.

The Bank of Canada says it has committed to publishing these summaries approximately two weeks after each rate decision beginning in January 2023.

But unlike what the Fed does, the summaries won’t provide attribution to individual board members and won’t record votes because there are no votes in the bank’s deliberative process.

In response to the report, the Bank of Canada said it welcomed the findings.

« The Bank is committed to constantly improving our transparency, » the bank said in an official statement. “While we regularly assess and develop our own practices, including through comprehensive reviews of our monetary policy framework every five years, we also respond to feedback from external stakeholders and consider broader trends in the monetary policy community. central banks. »