José Darío Uribe, Central Banker of the Year, According to The Banker, a British Financial Magazine

The Editorial Board of The Banker, a British magazine belonging to the The Financial Times Group, named José Dario Uribe as the American continent’s “Central Banker of the Year”.   An annual event, this designation was made public in the January issue of The Banker, which began circulating last week at the World Economic Forum in Davos.

In talking about the reasons why Banco de la República’s Governor was chosen for this honor, The Banker stressed the steady decline in inflation in Colombia and the adoption, some years ago, of an inflation-targeting strategy.  According to the magazine, Banco de la República “has not just reduced inflation, but has consolidated its independence by confirming that its main objective is to keep inflation low.”

The article mentions strict enforcement of the inflation target for 2006 (4.48%, a rate very close to the mid-point of the target range for that year), and indicates the target was achieved in the context of an economy that is growing above 6%.  In quoting the Governor, the magazine highlighted that  “ the inflation targets have become increasingly credible…Greater levels of transparency and accountability, coupled with an effective communication strategy,  have allowed for a better understanding of monetary policy among market agents. This, in turn, has contributed to its effectiveness…With the success on these fronts, we hope to bolster growing public support for monetary policy decisions and to broaden the credibility and independence of the Central Bank.”