Uncategorized

• December 22, 2023

  The Globe and Mail

  

  Tiff Macklem, Governor of the Bank of Canada
  Interview with The Globe and Mail

  Content Type(s): Press, Media activities
• December 21, 2023

  Summary of Comments – Summer 2023 Canada Mortgage Bonds Consultation

  In Budget 2023, the government announced its intention to hold market consultations on a proposal to consolidate Canada Mortgage Bonds (CMBs) within the regular Government of Canada (GoC) borrowing program.

  Content Type(s): Press, Market notices Source(s): Canada Mortgage Bonds: Government purchases and holdings
• December 21, 2023

  Summary of Comments – Fall 2023 Debt Management Strategy Consultations

  Today, the Fall 2023 Debt Management Strategy Consultations Summary is being published, following the release of the Government of Canada’s Economic and Fiscal Update 2023.

  Content Type(s): Press, Market notices
• December 21, 2023

  How higher interest rates affect inflation

  

  When the Bank of Canada changes its policy interest rate, it affects every part of the economy – but that does not happen all at once. Learn more about how raising and lowering interest rates takes effect through the monetary policy transmission mechanism.

  Content Type(s): Publications, The Economy, Plain and Simple Subject(s): Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework

• Climate-Related Flood Risk to Residential Lending Portfolios in Canada

  Staff discussion paper 2023-33 Craig Johnston, Geneviève Vallée, Hossein Hosseini Jebeli, Brett Lindsay, Miguel Molico, Marie-Christine Tremblay, Aidan Witts

  We assess the potential financial risks of current and projected flooding caused by extreme weather events in Canada. We focus on the residential real estate secured lending (RESL) portfolios of Canadian financial institutions (FIs) because RESL portfolios are an important component of FIs’ balance sheets and because the assets used to secure such loans are immobile and susceptible to climate-related extreme weather events.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C8, C81, G, G2, G21, Q, Q5, Q54 Research Theme(s): Financial system, Financial stability and systemic risk, Household and business credit, Structural challenges, Climate change

• Understanding the Systemic Implications of Climate Transition Risk: Applying a Framework Using Canadian Financial System Data

  Staff discussion paper 2023-32 Gabriel Bruneau, Javier Ojea Ferreiro, Andrew Plummer, Marie-Christine Tremblay, Aidan Witts

  Our study aims to gain insight on financial stability and climate transition risk. We develop a methodological framework that captures the direct effects of a stressful climate transition shock as well as the indirect—or systemic—implications of these direct effects. We apply this framework using data from the Canadian financial system.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C6, C63, G, G0, G01, G1, G10, G2, G20, Q, Q5, Q54 Research Theme(s): Financial system, Financial stability and systemic risk, Models and tools, Economic models, Structural challenges, Climate change
• December 20, 2023

  Summary of Governing Council deliberations: Fixed announcement date of December 6, 2023

  This is an account of the deliberations of the Bank of Canada’s Governing Council leading to the monetary policy decision on December 6, 2023.

  Content Type(s): Publications, Summary of deliberations

• The impact of higher interest rates on mortgage payments

  Staff analytical note 2023-19 Maria teNyenhuis, Adam Su

  We investigate how the increase in interest rates since early 2022 is affecting mortgage payments. By November 2023, less than half of mortgage holders had faced higher payments. Many borrowers will see a sizable increase in payments at renewal, although income growth could help mitigate the impact.

  Content Type(s): Staff research, Staff analytical notes JEL Code(s): D, D1, E, E4, E5, G, G2, G21 Research Theme(s): Financial system, Household and business credit, Monetary policy, Monetary policy framework and transmission

• Finding the balance—measuring risks to inflation and to GDP growth

  Staff analytical note 2023-18 Bruno Feunou, James Kyeong

  Using our new quantitative tool, we show how the risks to the inflation and growth outlooks have evolved over the course of 2023.

  Content Type(s): Staff research, Staff analytical notes JEL Code(s): C, C3, C32, C5, C58, E, E4, E44, G, G1, G17 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission, Real economy and forecasting

• Supporting the Transition to Net-Zero Emissions: The Evolving Role of Central Banks

  Staff discussion paper 2023-31 Karen McGuinness

  While climate change was largely tackled by government policies in the past, central banks are increasingly grappling with the risks climate change poses. They are evaluating their operational policies to reflect these risks and the transition to a net-zero economy. This paper explores the trade-offs and considerations central banks face.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): D, D5, D53, E, E5, E58, E6, E63, G, G3, G32, Q, Q5, Q54 Research Theme(s): Monetary policy, Monetary policy tools and implementation, Structural challenges, Climate change