Beyond its core mission, a central bank must also respond to the actions of other central banks to achieve its objectives. Global Finance assesses their success and interviews eight central bank governors for 2024 and 2025.
The past 12 months have been extremely difficult for central banks around the world. They are fighting inflation, trying to avoid recession, and often supporting the local job market, as well as dealing with the actions of other, and often larger, central banks around the world. You’re trying to predict and at the same time you’re trying to protect your own central bank. And in many cases, they are preparing new monetary policies based on expectations of lower growth and lower (still historically high) inflation rates. They typically react in real time to the movements of other central banks, including the likelihood and risk of taking an independent position on interest rates based on different assessments of economic conditions. For most governors, this therefore requires a complex balancing act between growth and inflation, with intense scrutiny and real-time reaction to what governors around the world are doing, often to protect their currencies. is needed even more.
Inflation control, economic growth and related short- and medium-term objectives, monetary stability, and monetary policy are applied in determining approximately 100 national, regional, and regional central banks, as well as regional central banks such as European countries. This is the main criterion. Central Bank (ECB), Bank of Central African States, Central Bank of West African States. Our scores often reflect not only pure economic performance in the local context, but also, where possible, each specific central bank’s compliance with its stated obligations. As a result, high and low scores often appear within the same region, with no distinction made between large and small economies.
But in the 30 years since this annual report was published, we have rarely been in a situation like we have been in recent months. The report is based on central banks’ performance from 1 July 2023 to 1 July 2023. The end of June this year. But a lot has happened in monetary policy around the world since then, including the US Federal Reserve’s first interest rate cut in more than four years, the ECB’s second interest rate cut in recent months, and significant monetary stimulus from the public. Bank of China and many other banks have cut interest rates in a kind of cascade effect. This probably didn’t change the score the governor received, but the associated commentary needed to be updated.
The fact that the highest-scoring governors (those earning an A+, A, or A-) represent a wide range of large and small economies in developed and emerging countries means that we are looking beyond just economic performance and growth. , and other criteria as well. For example, the economies of Denmark, India, and Switzerland, the three countries that received an A+ this year, have little in common in terms of inflation, interest rates, employment, etc. Each country’s governor received the highest rating, taking into account the performance of monetary policy in light of each country’s specific economic circumstances and the central bank’s specific mission. Some central bank officials were willing to be interviewed for this special report, but none knew their performance records in advance. We wanted to assess and report on their priorities and concerns and present relevant voices from around the world.
Although we previously announced the highest-rated governors, this report shows all other scores for the first time. While we strive for diversity in scores and regions, some scores will inevitably become dense. The final results reflect Global Finance’s intense and stimulating internal discussions.
methodology
Global Finance editors grade the world’s leading central bankers from A to F based on objective and subjective metrics, with input from financial industry insiders. A+ is the highest grade and F is the lowest grade. These judgments will be based on performance from July 1, 2023 to June 30, 2024. A governor must have served in office for at least one year to receive a letter grade. Central bank governors from countries in serious conflict are not included due to incomplete information.
The algorithm supports grading consistency across regions. The proprietary formula takes into account monetary policy, financial system supervision, asset purchase and bond sale programs, forecasting and guidance, transparency, political independence, and success in achieving national missions (which vary by country). I am.
Central bankers with an ‘A+’ rating in 2024 Governor grade Denmark Christian Köttel Thomsen A+ India Shaktikanta Das A+ Switzerland Thomas Jordan A+ Central bankers with an ‘A’ rating in 2024 Brazil Roberto Campos Neto A Chile Rosanna Costa A Mauritius Harbesh Kumar Seegoram A Morocco Abdellatifjuari A South Africa Lesetcha Kganyago A Sri Lanka Nadalal Weerasinghe A Vietnam Nguyen Thi Hong A Central to achieve ‘A-‘ rating in 2024 Bankers Cambodia Chea Serey A- Canada Tiff Macklem A- Costa Rica Roger Madrigal López A- Dominican Republic Héctor Valdes Albizu A- European Union Christine Lagarde A- Guatemala Álvaro González Ricci A- Indonesia Perry Warjiyo A- Jamaica Richard Biles A- Jordan Adel Alshakas A- Mongolia Byadran Lukagvaslen A- Norway Aida Walden Bache A- Peru Julio Velarde Flores A- Philippines Eli Lemolona A- Sweden Erik Tedine A- United States Jerome Hayden Powell A-
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