The Bank of Canada, Bank of England, Bank of Spain, Banque de France, Banca d’Italia, and European Central Bank are organizing the 6th Conference on Diversity, Equity and Inclusion in Economics, Finance, and Central Banking to be held in person on November 17, 2025.
Today, the Bank of Canada is announcing its plan to restart routine purchases of Government of Canada (GoC) treasury bills for normal balance sheet management purposes. The addition of treasury bill purchases will help restore a more balanced mix of assets on the Bank’s balance sheet.
I study the links between Canadian banks and non-bank financial intermediaries (NBFIs) by observing co-movements in stock prices. Perceived interconnections increased before the COVID-19 pandemic but have since stabilized, with the strongest ties seen between large banks and NBFIs. The secured credit line extended to Home Trust, a non-bank mortgage lender that experienced severe funding stress in 2017, significantly reduced banks' risk exposure to NBFIs during this episode.
We construct a dataset on Federal Reserve and Bank of Canada non-rate announcement events to provide novel insights into how foreign and domestic monetary policy communications affect the financial markets of open economies. We find that Fed non-rate communications have a stronger impact on long-term interest rates and stock futures, while Bank of Canada communications are relatively more important for short-term interest rates and the exchange rate.
On Wednesday, November 12, 2025, the Bank of Canada will publish a summary of the deliberations that took place ahead of its interest rate decision on October 29, 2025.