Posts

• April 16, 2020

  Results of today’s Canada Mortgage Bond purchase operation

  Today the Bank of Canada purchased $ 240,000,000 of Canada Mortgage Bonds in the secondary market.

  Content Type(s): Press, Market notices Source(s): Canada Mortgage Bond Purchase Program

• Learning, Equilibrium Trend, Cycle, and Spread in Bond Yields

  Staff working paper 2020-14 Guihai Zhao

  This equilibrium model explains the trend in long-term yields and business-cycle movements in short-term yields and yield spreads. The less-frequent inverted yield curves (and less-frequent recessions) after the 1990s are due to recent secular stagnation and procyclical inflation expectations.

  Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E43, G, G0, G00, G1, G12 Research Theme(s): Financial markets and funds management, Market functioning, Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission
• April 16, 2020

  CORRA illustrative time series updated to include additional data from February to April, 2020

  As announced on February 18, 2020, the Bank of Canada will take over the responsibility for publishing the Canadian Overnight Repo Rate Average (CORRA), effective Monday, June 15, 2020.

  Content Type(s): Press, Market notices Source(s): Canadian Alternative Reference Rate Working Group

• Interest Rate Uncertainty as a Policy Tool

  Staff working paper 2020-13 Fabio Ghironi, Galip Kemal Ozhan

  We study a novel policy tool—interest rate uncertainty—that can be used to discourage inefficient capital inflows and to adjust the composition of external account between shortterm securities and foreign direct investment (FDI).

  Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E32, F, F2, F21, F3, F32, G, G1, G15 Research Theme(s): Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Monetary policy tools and implementation, Structural challenges, International trade, finance and competitiveness

• Multi-Product Pricing: Theory and Evidence from Large Retailers in Israel

  Staff working paper 2020-12 Marco Bonomo, Carlos Carvalho, Oleksiy Kryvtsov, Sigal Ribon, Rodolfo Rigato

  Standard theories of price adjustment are based on the problem of a single-product firm, and therefore they may not be well suited to analyze price dynamics in the economy with multiproduct firms.

  Content Type(s): Staff research, Staff working papers JEL Code(s): D, D2, D21, D22, E, E3, E31, E5, E52, L, L1, L11 Research Theme(s): Financial markets and funds management, Market functioning, Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures
• April 15, 2020

  Bank of Canada to Introduce a Provincial Bond Purchase Program

  The Bank of Canada today announced its intention to introduce a Provincial Bond Purchase Program (PBPP) to further support the liquidity and efficiency of provincial government funding markets.

  Content Type(s): Press, Market notices Source(s): Provincial Bond Purchase Program
• April 15, 2020

  Bank of Canada announces increase in the amount of Government of Canada treasury bills it acquires at auction

  The Bank of Canada announced today that, to support continued liquidity and efficient functioning of the federal government’s treasury bill program, it is temporarily increasing the amount of treasury bills it acquires at auctions to up to 40 per cent, effective immediately.

  Content Type(s): Press, Market notices
• April 15, 2020

  Bank of Canada to Introduce a Corporate Bond Purchase Program

  In order to support the efficient and continuous functioning of financial markets, the Bank of Canada is announcing its intention to introduce a Corporate Bond Purchase Program (CBPP).

  Content Type(s): Press, Market notices Source(s): Corporate Bond Purchase Program
• April 15, 2020

  Monetary Policy Report Press Conference Opening Statement

  Opening statement Stephen S. Poloz Ottawa, Ontario

  Governor Stephen S. Poloz discusses key issues involved in the Governing Council’s deliberations about the policy rate decision and the MPR.

  Content Type(s): Press, Speeches and appearances, Opening statements Subject(s): Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework
• April 15, 2020

  Bank of Canada maintains overnight rate target and unveils new market operations

  Media Relations Ottawa, Ontario

  The Bank of Canada today maintained its target for the overnight rate at ¼ percent, which the Bank considers its effective lower bound. The Bank Rate is correspondingly ½ percent and the deposit rate is ¼ percent. The Bank also announced new measures to provide additional support to Canada’s financial system.

  Content Type(s): Press, Press releases