Best Latin American Central Banker: Massad, Chile

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Best Latin American Central Banker: Massad, Chile

Finance Minister and Central Banker of the Year: The regional winners


Carlos Massad has been head of the Banco Central in Chile since last year, following a chaotic nomination process which turned into a political slanging match that had little to do with his qualifications for the post.

Fortunately, things quietened down once he was in the job, and Massad is viewed as having turned in a solid performance. His operating style includes a readiness to debate publicly the reasoning behind his moves and a willingness to meet his critics head on.

The economic data are good. The central bank's year-end target of inflation at 5.5% looks achievable and may even come in at a little under, while analysts foresee GDP growth of around 5.5% as well. Against this background there has been room for a gradual easing of monetary policy. Interbank borrowing rates were cut in three stages by a total of 75 basis points up to mid-August, with another 25bp cut expected before year-end.

The biggest problem Massad has faced has been the strength of the Chilean peso, which on the back of heavy capital inflows has been appreciating in value, even against the dollar.


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