- Decision-making process starts a month before announcement with economic projections
- Governing Council uses consensus approach, not voting system like Fed or BoE
- Current focus on sticky inflation in services, including shelter costs
- Increased consideration given to risk of inflation falling below 2% target
- Emphasizes BOC’s commitment to bringing inflation back to target
- Full speech
The speech is an interesting one because it offers up some details on timelines and suggests that staff offers up recommendations a week before the meeting and then the meeting starts.
I have to let you in on a little secret. At the Bank’s head office, behind a massive wooden door, there is a room I like to call the Chamber of Secrets. It’s formally known as the Rasminsky Room, after Louis Rasminsky, the Bank’s third governor. All discussions and decisions about the policy rate take place in this room.
It’s a secure room where the blinds are always drawn, and access is controlled. From inside this room, no communication with the outside world is allowed, and the use of electronic devices is strictly regulated. When we say “private” deliberations, we really mean it! The Bank takes security very seriously—and with good reason. A leak could have serious consequences. Many stakeholders—financial market participants, in particular—are very eager to get news of the decision.
There isn’t much here on monetary policy but it’s an interesting read.
This article was written by Adam Button at www.forexlive.com. Source