Reinventing Central Banking


Reinventing central banking is about what we do to be a leader in all our core functions. Read more about our goals, strategic actions and what success looks like.

Advance the frontiers of monetary policy frameworks and research to build economic resilience

Goal 1.1 Advance the frontiers of monetary policy frameworks and research to build economic resilience

Strategic Actions

  1. Build richer and more realistic models that accurately capture changing economic conditions
  2. Renew the agreement on the inflation-control target with the Government of Canada
  3. Increase the relevance and visibility of Bank research

What success looks like

  • Improved use of economic policy and forecasting models in the Bank’s analysis.
  • A secured agreement with the Government of Canada on the renewal of the inflation-control target, resulting in a monetary policy framework that continues to promote the economic and financial welfare of Canadians.
  • Improved productivity and quality of policy-relevant research focused on the new economy, as demonstrated through an increased share of Bank publications in top-tier and top-of-field journals and through more citations of Bank research.

Incorporate financial stability considerations into the Bank’s policy advice and operations

Goal 1.2 Incorporate financial stability considerations into the Bank’s policy advice and operations

Strategic Actions

  1. Enhance the Bank’s assessment of financial system vulnerabilities and risks
  2. Evaluate the effectiveness of financial reforms and macroprudential tools
  3. Assess the interaction between financial stability risks and monetary policy
  4. Ensure the integrity of financial market infrastructures and benchmarks

What success looks like

  • A broader and deeper quantitative framework is used to assess systemic financial risk, contributing to policy that results in a stable and efficient financial system.
  • The Bank’s analysis of the effectiveness of financial reforms and monetary policy tools informs policy advice and choices.
  • Vulnerabilities and risks are monitored and projected, and models that capture the relationship between monetary policy and financial stability are integrated into policy analysis.
  • Oversight practices for financial market infrastructures (FMIs) evolve to meet internationally agreed-upon best practices, contributing to sustained confidence in FMIs.

Ensure sound and effective payment systems, methods and technologies

Goal 1.3 Ensure sound and effective payment systems, methods and technologies

Strategic Actions

  1. Explore whether and in what form the Bank could issue a central bank digital currency
  2. Provide direction on and participate in the modernization of the Canadian payments system
  3. Evolve currency design, issuance and distribution

What success looks like

  • Conditions under which the Bank would consider issuing a central bank digital currency are clarified and identified.
  • The Bank’s direction on the future design of the Canadian payments system helps drive consensus and supports the overall progress of modernization.
  • Quality standards for bank notes are adopted by financial institutions and large cash-handling organizations.
  • A more flexible issuance approach is operationalized, and the design of a renewed distribution system is completed to keep pace with the evolving use of bank notes. These actions contribute to high-quality notes in circulation, low levels of counterfeiting, and continued pride and confidence in our currency.