Posts

• Benchmarks for assessing labour market health: 2024 update

  Staff analytical note 2024-8 Erik Ens, Alexander Lam, Kurt See, Gabriela Galassi

  We assess the health of the Canadian labour market. We find that it has seen gradual but material easing since 2023, amid some signs of structural changes.

  Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E2, J, J2, J3, J6 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Real economy and forecasting, Structural challenges, Demographics and labour supply
• April 29, 2024

  CARR Meeting (April 29, 2024)

  Content Type(s): Meetings Source(s): Canadian Alternative Reference Rate Working Group

• The Neutral Interest Rate: Past, Present and Future

  Staff discussion paper 2024-3 Matteo Cacciatore, Bruno Feunou, Galip Kemal Ozhan

  The decline in safe real interest rates over the past three decades has reignited discussions on the neutral real interest rate, known as R*. We address the determinants and estimation methods of R*, as well as the factors influencing its decline and its future trajectory.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E4, E43, E5, E52, E6, E62 Research Theme(s): Monetary policy, Monetary policy framework and transmission, Real economy and forecasting
• April 25, 2024

  CFIF announces the establishment of the Collateral Infrastructure and Market Practices Advisory Group

  The Canadian Fixed-Income Forum today announced the establishment of the Collateral Infrastructure and Market Practices Advisory Group.

  Content Type(s): Press, Market notices Source(s): Collateral Infrastructure and Market Practices Advisory Group
• April 25, 2024

  Bank of Canada plans to re-introduce its securities lending program

  The Bank of Canada is planning to restart later this year its securities lending program (SLP) which is designed to support the liquidity of Government of Canada (GoC) securities markets.

  Content Type(s): Press, Market notices Source(s): Securities Lending Program, Securities Repo Operations
• April 24, 2024

  Summary of Governing Council deliberations: Fixed announcement date of April 10, 2024

  This is an account of the deliberations of the Bank of Canada’s Governing Council leading to the monetary policy decision on April 10, 2024.

  Content Type(s): Publications, Summary of deliberations
• April 22, 2024

  Market Participants Survey—First Quarter of 2024

  The Market Participants Survey results are based on questionnaire responses from about 30 financial market participants.

  Content Type(s): Publications, Market Participants Survey
• April 17, 2024

  Introduction of one-month treasury bill

  In line with the announcement in the federal 2024 Budget, the Government of Canada will be introducing a temporary one-month treasury bill.

  Content Type(s): Press, Market notices

• U.S. Macroeconomic News and Low-Frequency Changes in Small Open Economies’ Bond Yields

  Staff working paper 2024-12 Bingxin Ann Xing, Bruno Feunou, Morvan Nongni-Donfack, Rodrigo Sekkel

  Using two complementary approaches, we investigate the importance of U.S. macroeconomic news in driving low-frequency fluctuations in the term structure of interest rates in Canada, Sweden and the United Kingdom. We find that U.S. macroeconomic news is particularly important to explain changes in the expectation components of the nominal, real and break-even inflation rates of small open economies.

  Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E43, E44, E47, G, G1, G14 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Economic models, Monetary policy, Monetary policy framework and transmission, Structural challenges, International trade, finance and competitiveness

• Liquidity risks at Canadian life insurance companies

  Staff analytical note 2024-7 Patrick Aldridge, Stephane Gignac, Rishi Vala, Adrian Walton

  We examine how life insurers manage liquidity risks created by their business model. We find that Canadian life insurers did not face significant liquidity draws and continued their usual investment behaviour during the COVID-19 crisis and as interest rates increased in 2022.

  Content Type(s): Staff research, Staff analytical notes JEL Code(s): D, D4, D47, D5, D53, G, G1, G12, G14, G2, G23 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial institutions and intermediation, Financial stability and systemic risk