Central Banking’s fifth annual awards recognise outstanding achievement within a community that has had to balance monetary accommodation and financial stability in an environment of rapid innovation, political change and global uncertainty.
The Bank of Canada – this year’s Central Bank of the Year – emerged as a beacon of best practice for much of the community, setting the standard for a transparent, operationally independent central bank. The judging panel, compromising members of Central Banking’s advisory board and editorial team, noted the Canadian central bank pursues its core areas of responsibility with exemplary openness and constantly challenges itself to generate improvements in a manner that is matched by few of its peers.
The Bank of Canada has also fostered an open debate on potentially changing its mandate – an effort admired by many – while its risk management approach to monetary policy has resulted in inflation hitting 2%, despite its raising benchmark interest rate three times since July 2017. A top-tier website and well-thought-out communications have lent additional support, while groundbreaking work on distributed ledger, internal ratings and currency management all show the Bank of Canada is willing to push the boundaries of modern central banking.
“Central banks are operating in a highly uncertain world,” says governor Stephen Poloz, in reaction to the award. “The more clear and honest we are about this uncertainty and what it means, the more effective we can be in our policies, operations and service to the public.”