VOL. 38 No. 9
In global finance, creating report cards for central bank governors has always been a complex and thorough project. Choosing more than 100 governors from very different economies and with such different powers over the central bank is a complex task. However, our commitment to applying similar analytical standards to all companies ensures that our analysis is comprehensive, reliable, and has a meaningful impact on the global economy.
This year we have had to deal with some additional modern developments. The Federal Reserve cut interest rates by 50 basis points in September for the first time in more than four years. This move had a cascading effect involving many other central banks around the world. The European Central Bank cut interest rates earlier this year and announced another one a week before the Fed cut. Meanwhile, the Bank of Japan raised interest rates in July, and the People’s Bank of China recently announced a rate cut in late September.
These monetary policies appear to usher the world economy into a new phase. Indeed, this will be a widespread focus at the annual meetings of the IMF and World Bank in Washington this year. Our report card is based on the President’s performance from June 2023 to June 2024. In the governor’s articles and interviews, we have updated the latest monetary policy efforts as much as possible, but the “grades” have not been updated and probably would not have changed in any case.
Our cover story considers a soft landing scenario for the global economy, which is quite different from the deep concerns about high inflation and recession risks just a year ago.
This issue also features other important features, including our annual selection of the world’s best banks in several sectors. We also add an annual appendix on Africa and Latin America, including Central America and the Caribbean. We cover economic and financial developments in many of these regions, looking at innovation and economic vibrancy generally. There are always so many things I want to report.
Andrea Fiano | General Editor
afiano@gfmag.com
