Staff analytical notes - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T08:10:55+00:00What has been putting upward pressure on CORRA?
https://www.bankofcanada.ca/2024/03/staff-analytical-note-2024-4/
From the autumn of 2023 into early 2024, the Canadian Overnight Repo Rate Average (CORRA), a measure of the cost of overnight general collateral Canadian dollar repos, was consistently well above the Bank’s target for the overnight rate. We find that, among several factors, long bond positions that require repo financing are the main driver of the recent upward pressure on CORRA.2024-03-21T09:35:25+00:00enWhat has been putting upward pressure on CORRA?2024-03-21How changes in the share of constrained households affect the effectiveness of monetary policy
https://www.bankofcanada.ca/2024/02/staff-analytical-note-2024-3/
We measure how the change in the share of constrained households in Canada following the COVID-19 recession has impacted the effectiveness of monetary policy.2024-02-21T14:06:06+00:00enHow changes in the share of constrained households affect the effectiveness of monetary policy2024-02-21Market structure of cryptoasset exchanges: Introduction, challenges and emerging trends
https://www.bankofcanada.ca/2024/01/staff-analytical-note-2024-2/
This paper provides an overview of cryptoasset exchanges. We contrast their design with exchanges in traditional financial markets and discuss emerging regulatory trends and innovations aimed at solving the problems cryptoasset exchanges face.2024-01-30T13:56:10+00:00enMarket structure of cryptoasset exchanges: Introduction, challenges and emerging trends2024-01-30Modelling Canadian mortgage debt and payments in a semi-structural model
https://www.bankofcanada.ca/2024/01/staff-analytical-note-2024-1/
We show how Canadian mortgage debt dynamics can be modelled in a semi-structural macroeconomic model, such as the Bank of Canada’s LENS. The model we propose accounts for Canada’s unique mortgage debt structure.2024-01-08T11:16:48+00:00enModelling Canadian mortgage debt and payments in a semi-structural model2024-01-08The impact of higher interest rates on mortgage payments
https://www.bankofcanada.ca/2023/12/staff-analytical-note-2023-19/
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.2023-12-19T14:33:41+00:00enThe impact of higher interest rates on mortgage payments2023-12-19Finding the balance—measuring risks to inflation and to GDP growth
https://www.bankofcanada.ca/2023/12/staff-analytical-note-2023-18/
Using our new quantitative tool, we show how the risks to the inflation and growth outlooks have evolved over the course of 2023.2023-12-19T11:22:43+00:00enFinding the balance—measuring risks to inflation and to GDP growth2023-12-19Assessing the effects of higher immigration on the Canadian economy and inflation
https://www.bankofcanada.ca/2023/12/staff-analytical-note-2023-17/
We assess the complex macroeconomic implications of Canada’s recent population increases. We find that newcomers significantly boost the non-inflationary, potential growth of the economy, but existing imbalances in the housing sector may be exacerbated. Greater housing supply is needed to complement the long-term economic benefits of population growth.2023-12-07T12:35:52+00:00enAssessing the effects of higher immigration on the Canadian economy and inflation2023-12-07Machine learning for economics research: when, what and how
https://www.bankofcanada.ca/2023/10/staff-analytical-note-2023-16/
This article reviews selected papers that use machine learning for economics research and policy analysis. Our review highlights when machine learning is used in economics, the commonly preferred models and how those models are used.2023-10-27T12:00:04+00:00enMachine learning for economics research: when, what and how2023-10-27Decentralized finance: Innovations and challenges
https://www.bankofcanada.ca/2023/10/staff-analytical-note-2023-15/
Decentralized finance surged in popularity around 2020. We explore its value and limitations and highlight some potential regulatory concerns.2023-10-16T14:00:22+00:00enDecentralized finance: Innovations and challenges2023-10-16Three things we learned about the Lynx payment system
https://www.bankofcanada.ca/2023/10/staff-analytical-note-2023-14/
Canada transitioned to a new wholesale payment system, Lynx, in August 2021. Lynx is based on a real-time settlement model that eliminates credit risk in the system. This model can require more liquidity; however, Lynx’s design allows Canada’s wholesale payments to settle efficiently.2023-10-10T14:30:23+00:00enThree things we learned about the Lynx payment system2023-10-10