Toni Gravelle

Deputy Governor

Executive

Bio

Toni Gravelle was appointed Deputy Governor of the Bank of Canada, effective October 1, 2019. In this role, he oversees the Financial Markets Department (FMD) and the Banking and Payments Department, and is one of two Deputy Governors who oversee the Bank’s role in maintaining a stable and efficient financial system. As a member of the Bank’s Governing Council, he also shares responsibility for decisions about monetary policy and for setting the strategic direction of the Bank.

Mr. Gravelle first joined the Bank in 1996 as an analyst in FMD and went on to hold increasingly senior positions. He became Deputy Managing Director of the Financial Stability Department in 2008 and held that position until 2013, when he was seconded to the Department of Finance Canada. He returned to the Bank in 2015 when he was appointed Managing Director of FMD.

Along with his expertise in Canada’s financial sector, Mr. Gravelle brings international experience to the Bank. From 2002 to 2005, he was an economist at the International Monetary Fund (IMF), where he helped assess the stability of financial systems in France and Senegal and contributed to the IMF’s semi-annual Global Financial Stability Report.

Mr. Gravelle is a native of Corbeil, Ontario, and holds a PhD in economics from Western University.

Speeches

January 16, 2025

The end of quantitative tightening and what comes next

Remarks Toni Gravelle VersaFi (formerly Women in Capital Markets) Toronto, Ontario
Deputy Governor Toni Gravelle provides an update on when quantitative tightening will end and how the Bank of Canada will manage its balance sheet after that.
Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Financial system, Financial markets, Financial stability, Monetary policy, Economy/Economic growth, Inflation targeting framework
March 29, 2023

The Bank of Canada’s market liquidity programs: Lessons from a pandemic

Remarks Toni Gravelle National Bank Financial Services Conference Montréal, Quebec
Deputy Governor Toni Gravelle speaks about market liquidity measures taken during the COVID-19 pandemic, and addresses recent turmoil in the US and international banking sectors.
Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Financial system, Financial markets, Financial stability, Monetary policy, Economic models

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Staff research

Reviewing Canada’s Monetary Policy Implementation System: Does the Evolving Environment Support Maintaining a Floor System?

Staff discussion paper 2023-10 Toni Gravelle, Ron Morrow, Jonathan Witmer
At the onset of the pandemic, the Bank of Canada transitioned its framework for monetary policy implementation from a corridor system to a floor system, which it has since decided to maintain. We provide a comprehensive analysis of both frameworks and assess their relative merits based on five key criteria that define a sound framework.
Content Type(s): Staff research, Staff discussion papers JEL Code(s): D, D4, D47, E, E4, E42, E5, E58 Research Theme(s): Financial markets and funds management, Market structure, Monetary policy, Monetary policy tools and implementation, Money and payments, Payment and financial market infrastructures

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Bank publications

Bank of Canada Review articles

November 11, 2008

The Market Impact of Forward-Looking Policy Statements: Transparency vs. Predictability

Bank of Canada Review - Winter 2008-2009 Christine Fay, Toni Gravelle
Central banks continuously strive to improve how they communicate to financial markets and the public in order to increase transparency. For this reason, many central banks have begun to include guidance on the policy rate in the form of forward-looking statements in their communications. This article examines the debate over the usefulness of providing such statements from both theoretical and empirical standpoints. The evidence presented here suggests that the use of forward-looking statements in Bank of Canada communications has made the Bank more predictable, but not necessarily more transparent.
Content Type(s): Publications, Bank of Canada Review articles
October 12, 2007

Bank of Canada Workshop on Derivatives Markets in Canada and Beyond

Bank of Canada Review - Autumn 2007 Toni Gravelle
At this 2006 workshop hosted by the Bank of Canada, an international group of market participants, regulators, and policy-makers gathered to assess recent developments in the derivatives market. Among the topics discussed were the recent prodigious growth in risk-transfer instruments, including credit derivatives and inflation-linked derivatives, as well as the accompanying challenges and benefits. Overall, the development of derivatives markets was seen as providing broad economic benefits, including more complete financial markets, improved market liquidity, and increased capacity of the financial system to effectively price and bear risk. Yet concern was also voiced that market participants do not fully understand the risks that arise in trading credit derivatives.
Content Type(s): Publications, Bank of Canada Review articles
November 15, 1999

Markets for Government of Canada Securities in the 1990s: Liquidity and Cross-Country Comparisons

Bank of Canada Review - Autumn 1999 Toni Gravelle
In this article, the author reviews the factors behind the recent evolution of liquidity in the market for Government of Canada (GoC) securities. He finds that liquidity has been supported by changes in the structure of the market, notably the introduction and increasing size of benchmark bond issues. He also notes that while the GoC bond market has generally benefited from changes in market structure, liquidity in the treasury bill market has decreased since the mid-1990s, largely because of the declining supply of these securities. This article also presents some comparisons of liquidity in the government securities markets of other industrialized countries and finds that liquidity in the Canadian market appears to compare favourably with all but the large U.S. Treasury market.
Content Type(s): Publications, Bank of Canada Review articles

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The Economy, Plain and Simple

June 10, 2020

Our COVID-19 response: Keeping markets liquid

Toni Gravelle
When the COVID-19 pandemic hit Canada, the Bank of Canada acted quickly. We needed to make sure the financial system worked well enough that credit could continue to flow. That meant addressing shortages of liquidity in financial markets—the backbone for lending and borrowing in the economy.
Content Type(s): Publications, The Economy, Plain and Simple Subject(s): Financial system, Financial markets, Financial stability, Monetary policy, Economy/Economic growth

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Financial System Review articles

Journal publications

Refereed Journals