Jean-Sébastien Fontaine - Latest - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T14:49:06+00:00Price Caps in Canadian Bond Borrowing Markets
https://www.bankofcanada.ca/2019/01/staff-analytical-note-2019-2/
Price controls, or caps, can lead to shortages, as 1970’s gasoline price controls illustrate. One million trades show that the market for borrowing bonds in Canada has an implicit price cap: traders are willing to pay no more than the overnight interest rate to borrow a bond. This suggests the probability of a shortage increases when interest rates are very low.2019-01-14T11:47:36+00:00enPrice Caps in Canadian Bond Borrowing Markets2019-01-14The Secular Decline of Forecasted Interest Rates
https://www.bankofcanada.ca/2019/01/staff-analytical-note-2019-1/
Canadian interest rates show a secular decline since the 1980s. Long-term survey-based forecasts of interest rates also declined, but less so and were more gradual. Our model-based estimates show an endpoint shifting over time in three phases: a decline between 1990 and 1995, a period of stability between 1996 and 2007, and a further decline since 2008. The current endpoint estimate remains clouded with uncertainty; this is an active area of research.2019-01-11T14:05:40+00:00enThe Secular Decline of Forecasted Interest Rates2019-01-11