Rhys R. Mendes

Deputy Governor

Executive
  • Ph.D., University of Toronto
  • M.A., University of Toronto
  • B.A. (Honours), York University

Bio

Rhys R. Mendes was appointed Deputy Governor of the Bank of Canada, effective July 2023. In this role, he oversees the Bank’s economic and financial research, its analysis of international economic developments and he serves as the Bank’s G7 and G20 Deputy. As a member of the Bank’s Governing Council, he shares responsibility for decisions with respect to monetary policy and financial system stability and for setting the strategic direction of the Bank.

At the time of his appointment, Mr. Mendes was on secondment to the Department of Finance, where he was serving as Assistant Deputy Minister. Prior to his secondment in 2021, Mr. Mendes had been the Managing Director of the Bank of Canada’s International Economic Analysis Department. He was responsible for the management and strategic direction of the department, providing rigorous and timely analysis of global economic conditions as well as advice on monetary policy and international policy issues. He also led large parts of the Bank’s work to review the monetary policy framework for the 2021 renewal of the inflation-targeting agreement with the Government of Canada.

Mr. Mendes joined the Bank in 2004. He held increasingly senior positions before being appointed as Deputy Managing Director of the Canadian Economic Analysis Department in 2013, Managing Director of Economic and Financial Research in 2016, then Managing Director of International Economic Analysis in 2017. Throughout his career, Mr. Mendes has contributed to development of the Bank’s economic modelling and has been an expert in monetary policy framework design and international economic policy issues.

Born in Richmond Hill, Ontario, Mr. Mendes holds a BA in economics from York University, and an MA and PhD in economics from the University of Toronto.

Speeches

October 2, 2025

Underlying inflation: Separating the signal from the noise

Remarks Rhys R. Mendes Ivey Business School London, Ontario
Deputy Governor Rhys Mendes speaks about how the Bank of Canada assesses underlying inflation, including the use of measures of core inflation. He also touches on the renewal of the monetary policy framework, which happens in 2026.
Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Monetary policy, Economic models, Inflation, Inflation targeting framework

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Staff research

The Bank of Canada’s “Horse Race” of Alternative Monetary Policy Frameworks: Some Interim Results from Model Simulations

Staff discussion paper 2021-13 José Dorich, Rhys R. Mendes, Yang Zhang
Bank of Canada staff are running a “horse race” of alternative monetary policy frameworks in the lead-up to 2021 renewal of the Bank’s monetary policy framework. This paper summarizes some interim results of model simulations from their research.
Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E2, E27, E3, E4, E5, E52, E58 Research Theme(s): Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission

The Power of Helicopter Money Revisited: A New Keynesian Perspective

Staff discussion paper 2020-1 Thomas J. Carter, Rhys R. Mendes
We analyze money financing of fiscal transfers (helicopter money) in two simple New Keynesian models: a “textbook” model in which all money is non-interest-bearing (e.g., all money is currency), and a more realistic model with interest-bearing reserves.
Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E1, E12, E4, E41, E43, E5, E51, E52, E58, E6, E61, E63 Research Theme(s): Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Monetary policy tools and implementation

Credibility, Flexibility and Renewal: The Evolution of Inflation Targeting in Canada

Staff discussion paper 2018-18 Thomas J. Carter, Rhys R. Mendes, Lawrence L. Schembri
In 1991, Canada became the second country to adopt an inflation target as a central pillar of its monetary policy framework. The regime has proven much more successful than initially expected, both in achieving price stability and in stabilizing the real economy against a wide range of shocks.
Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E5, E52, E58, E6, E61 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission

Could a Higher Inflation Target Enhance Macroeconomic Stability?

Staff working paper 2018-17 José Dorich, Nicholas Labelle, Vadym Lepetyuk, Rhys R. Mendes
Recent international experience with the effective lower bound on nominal interest rates has rekindled interest in the benefits of inflation targets above 2 per cent. We evaluate whether an increase in the inflation target to 3 or 4 per cent could improve macroeconomic stability in the Canadian economy.
Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E32, E37, E4, E43, E5, E52 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission

Monetary Policy Under Uncertainty: Practice Versus Theory

Staff discussion paper 2017-13 Rhys R. Mendes, Stephen Murchison, Carolyn A. Wilkins
For central banks, conducting policy in an environment of uncertainty is a daily fact of life. This uncertainty can take many forms, ranging from incomplete knowledge of the correct economic model and data to future economic and geopolitical events whose precise magnitudes and effects cannot be known with certainty.
Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E5, E52, E58, E6, E61, E65 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission, Monetary policy tools and implementation

A Structural Interpretation of the Recent Weakness in Business Investment

Staff analytical note 2017-7 Russell Barnett, Rhys R. Mendes
Since 2012, business investment growth has slowed considerably in advanced economies, averaging a little less than 2 per cent versus the 4 per cent growth rates experienced in the period leading up to crisis. Several recent studies have attributed a large part of the weakness in business investment to cyclical factors, including soft aggregate demand, and, to a lesser degree, heightened uncertainty and tighter financial conditions.
Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E2, E22, E3, E37 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Real economy and forecasting, Structural challenges, Demographics and labour supply

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Bank publications

Bank of Canada Review articles

November 13, 2014

Should Forward Guidance Be Backward-Looking?

Bank of Canada Review - Autumn 2014 Rhys R. Mendes, Stephen Murchison
When constrained by the zero lower bound, some central banks have communicated a threshold that must be met before short-term interest rates would be permitted to rise. Simulation results for Canada show that forward guidance that is conditional on achieving a price-level threshold can theoretically raise demand and inflation expectations by significantly more than unemployment thresholds. This superior performance is attributable to the fact that the price-level threshold depends on past inflation outcomes. In practice, however, history-dependent thresholds such as this might be more challenging for central banks to communicate.
Content Type(s): Publications, Bank of Canada Review articles JEL Code(s): E, E5, E52, E58
May 17, 2012

Inflation Targeting: The Recent International Experience

Bank of Canada Review - Spring 2012 Robert Lavigne, Rhys R. Mendes, Subrata Sarker
In the years since the 2006 renewal of Canada’s inflation-control agreement, monetary policy regimes have faced significant shocks, including the global economic and financial crisis. This article reviews the recent experience with inflation targeting, including the debate about the appropriate role of monetary policy in maintaining financial stability. In the aftermath of the crisis, both […]
Content Type(s): Publications, Bank of Canada Review articles JEL Code(s): E, E3, E31, E5, E52, E58
August 18, 2011

Introducing Multiple Interest rates in ToTEM

Bank of Canada Review - Summer 2011 José Dorich, Rhys R. Mendes, Yang Zhang
This article describes changes to the structure of ToTEM—the Bank of Canada’s main model for projection and policy analysis—that allow an independent role for long-term interest rates, as well as for the risk spreads that lead to differences in the interest rates faced by households, firms and the government. These changes broaden the range of policy questions that the model can address and improve its ability to explain data. The authors use the model to simulate the effects of shocks to the risk spreads on interest rates similar to those that occurred during the recent financial crisis. They also use the model to assess the macroeconomic impact of higher requirements for bank capital and liquidity.
Content Type(s): Publications, Bank of Canada Review articles
November 11, 2009

Declining Inflation Persistence in Canada: Causes and Consequences

Bank of Canada Review - Winter 2009-2010 Rhys R. Mendes, Stephen Murchison
The persistence of both core and total consumer price index inflation in Canada has declined significantly since the 1980s. In addition to providing up-to-date estimates of inflation persistence, this article examines possible reasons for the decline suggested in the literature. The role played by monetary policy, through its effect on price- and wage-setting behaviour, is distinguished from possible changes to the structure of the economy that are independent of monetary policy. The authors also discuss the implications for monetary policy of low structural persistence in inflation, including the choice of an inflation-targeting regime versus a price-level-targeting regime.
Content Type(s): Publications, Bank of Canada Review articles

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The Economy, Plain and Simple

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Journal publications

Other

Published comments

  • “Chair’s remarks: Understanding commodity price cycles in emerging Asia and their implications for monetary policy”
    In Globalisation and inflation dynamics in Asia and the Pacific, BIS Papers No. 70, pp. 67-69, January 2013, Bank for International Settlements.