May 28, 2026 Financial Stability Report—2026—Financial markets The war in the Middle East has led to periods of increased volatility and reduced liquidity in certain markets, particularly in energy. Nevertheless, markets have generally remained resilient. Equity valuations are still elevated, and credit spreads are compressed.
May 28, 2026 Financial Stability Report—2026—Overall assessment Canada’s financial system has continued to function well despite US tariffs and trade uncertainty. But a more turbulent global environment poses risks to financial stability, particularly if several vulnerabilities crystalize at the same time.
May 27, 2026 Bank of Canada joins BIS Project Agorá to test improvements in wholesale cross-border payments Media Relations Ottawa, Ontario The Bank of Canada announced today it is joining the Bank for International Settlements’ Project Agorá, an initiative exploring how tokenization could improve wholesale cross-border payments. Content Type(s): Press, Press releases
May 26, 2026 Speech: Nicolas Vincent, External Deputy Governor Montréal, Quebec Content Type(s): Upcoming events
May 26, 2026 Speech by Nicolas Vincent, External Deputy Governor of the Bank of Canada On Tuesday, May 26, 2026, Nicolas Vincent, External Deputy Governor of the Bank of Canada, will speak before the Centre interuniversitaire de recherche en analyse des organisations (CIRANO). Content Type(s): Press, Media advisories
May 26, 2026 Canada’s labour market: between cycles and structural change Remarks Nicolas Vincent Centre interuniversitaire de recherche en analyse des organisations (CIRANO) Montréal, Quebec External Deputy Governor Nicolas Vincent explores the factors driving recent shifts in Canada’s labour market and the implications for monetary policy. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Monetary policy, Economic models, Economy/Economic growth
May 26, 2026 Diagnosing change in the labour market Speech summary Nicolas Vincent Centre interuniversitaire de recherche en analyse des organisations (CIRANO) Ottawa, Ontario External Deputy Governor Nicolas Vincent discusses three trends signaling weakness in Canada’s labour market, exploring whether they reflect temporary factors or deeper structural change. Content Type(s): Press, Speeches and appearances, Speech summaries Subject(s): Monetary policy, Economy/Economic growth, Inflation
Central Bank Crisis Interventions and the Term Structure of Market Fear Staff working paper 2026-17 Mattia Bevilacqua, Jon Danielsson, Lerby Ergun, Andreas Uthemann, Jean-Pierre Zigrand How do central bank crisis interventions calm market fears? Using options data, we measure the perceived risk of large asset price drops across horizons from two weeks to ten years. Studying the Fed's response to the 2020 turmoil, we find asset purchases reduce short-term fears while interest rate actions shape long-term expectations. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C5, C58, E, E5, E58, G, G0, G01, G1, G12, G15 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk, Models and tools, Econometric, statistical and computational methods
Assessing the US and Canadian neutral rates: 2026 update Staff analytical paper 2026-21 Felipe Alves, William Beaudoin, Hélène Desgagnés, Wei Dong, Jan David Schneider, Eugene Trostin, Argyn Toktamyssov, Hannes Twieling We assess the Canadian nominal neutral rate to be in the range of 2.25% to 3.25%, unchanged from our assessment in 2025. We assess the US nominal neutral rate to be in the range of 2.50% to 3.50%, somewhat higher than the range of 2.25% to 3.25% reported in the 2025 assessment. Content Type(s): Staff research, Staff analytical paper JEL Code(s): E, E4, E43, E5, E52 Research Theme(s): Monetary policy, Monetary policy framework and transmission