Annual Report 2021


Governor's foreword

The end of 2021 felt much like the beginning—full of cautious optimism but clouded by near-term uncertainty about the path of the COVID‑19 pandemic and its impact on the economy. But in fact much has changed.

2021 by the numbers

A review of some key numbers related to the Bank of Canada’s work in 2021.

In focus

Renewing the Bank’s monetary policy framework

Every five years, the Bank and the Government of Canada review and renew their agreement on Canada’s monetary policy framework. In 2021, Canada’s flexible inflation-targeting framework was renewed for 2022 to 2026.

Supervising retail payments in Canada

In 2021, the Bank’s tool kit for promoting the resilience of the financial system expanded. Under the Retail Payment Activities Act, which received Royal Assent in June, the Bank will be responsible for supervising payment service providers (PSPs).

Preparing for a central bank digital currency

In 2021, the Bank continued to build its capacity for issuing a central bank digital currency (CBDC)—a digital form of money the central bank would make available to all Canadians.

Advancing the Bank’s climate change work

Climate change poses significant risks to the economy and financial system. In 2021, the Bank deepened its understanding of these risks and continued its efforts to reduce its carbon footprint and manage climate-related risks to its operations.

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