9 June 2016 Securities Financing and Bond Market LiquidityThis report investigates how the markets for repurchase agreements and securities-lending agreements support the liquidity of Canadian bond markets. It also discusses how recent regulatory changes, as well as low interest rates and settlement failures, are potentially affecting securities-financing markets and, as a result, bond market liquidity.
9 June 2016 Financial System Review - June 2016
The Reports section of the Financial System Review examines selected issues of relevance to the Canadian and global financial systems. The June 2016 issue features two reports written by Bank of Canada staff. The first examines the role played by a particular type of investor—large public pension funds—in the financial system, and the second describes how the market for securities-financing transactions helps support bond market liquidity in Canada.
30 May 2016 Quarterly Financial Report - First Quarter 2016
Quarterly Financial Report - First Quarter 2016 - For the period ended 31 March 2016
16 May 2016 Estimating Canada’s Effective Lower BoundRecently, the Bank of Canada has estimated the effective lower bound (ELB) on its policy interest rate to be about -50 basis points. This article outlines the analysis that underpins that estimate by quantifying the costs of storing and using cash in Canada. It also explores how some international markets have adapted to negative interest rates, issues surrounding their implementation, as well as their transmission to other interest rates in the economy. Finally, it discusses theoretical ideas on how the ELB could be reduced further.
U.S. retail food price increases in recent years may seem large in nominal terms, but after adjusting for inflation have been quite modest even after the change in U.S. biofuel policies in 2006. In contrast, increases in the real prices of corn, soybeans, wheat and rice received by U.S. farmers have been more substantial and can be linked in part to increases in the real price of oil.