Julie Gordon and Steve Scherer
OTTAWA (Reuters) – The Bank of Canada said on Wednesday it will begin issuing publications next year Summary of its Monetary Policy Review, accepting a key recommendation from the IMF’s Transparency Review.
Similar to meeting minutes issued by other central banks, “summaries of deliberations” will be released approximately two weeks after each rate decision, from the Bank of Canada said January 25 Meeting.
“We do hope that it provides a high-level summary of the issues discussed by the Council and provides insight into their focus as they consider economic developments and risks,” said Jeremy, Managing Director, Communications Harrison told reporters.
“Given our consensus-based decision-making system, this summary will not provide attribution of individual council members, nor will votes be recorded as no votes were cast in our system,” he added. minutes and make its decision-making process more transparent.
The decision to issue the summary comes amid heightened concerns about the pace of rate hikes – the central bank has raised policy rates by 300 basis points in six months – May cause a recession.
Economists say providing summaries similar to minutes released by the Federal Reserve and Bank of England could help avoid unnecessary market volatility.
“They can provide valuable context for how the council makes its decisions, which will fill a gap that has been apparent for some time,” said Royce Mendes, head of macro strategy at Desjardins Group.
However, much depends on how much new information is included, Mendes added.
The bank has included some details about its talks in the opening remarks of its quarterly monetary policy report and in remarks following other decisions.
“Even basic TD Securities chief Canada strategist Andrew Kelvin said an overview can help correct or clarify potential misunderstandings. At least, it won’t negatively impact the market.”
The International Monetary Fund publishes its 98 page report on Wednesday following a voluntary review with the Bank of Canada. The report includes 10 recommendations, including that the bank publish a summary of its rate decision and provide more transparency on its “bilateral cooperation” with the government.
The IMF also recommended that the bank increase its disclosures in the event of intervention in foreign exchange markets. The Bank of Canada said providing more information was not a “priority” in part because the bank has since 1998 has not intervened in the foreign exchange market since.
CAD/USD rose 0.3% to 1. 3684, or 73.08 cents.