The Bank conducts Special Purchase and Resale Agreements (SPRAs) and Sale and Repurchase Agreements (SRAs) to implement its monetary policy framework in the LVTS environment. SPRAs and SRAs are used to reinforce the target overnight rate at the mid-point of the operating band.
Find out when decisions are made, who decides and the key stages of monetary policy decision making. You can also read detailed articles on the subject.
The Bank carries out monetary policy by influencing short-term interest rates. It does this by adjusting the target for the overnight rate on eight fixed dates each year.
Since its introduction in 1991, inflation-control targeting has made monetary policy more understandable and has helped keep the rate of inflation within acceptable limits.
As part of the Bank of Canada's interest rate decision on 1 June 2010, the Bank will re-establish the standard operating framework for the implementation of monetary policy.
The market in which short-term capital is raised, invested, and traded using financial instruments such as treasury bills, bankers' acceptances, commercial paper, and bonds maturing in one year or less.