September 30, 2015 Overnight repos The Bank conducts overnight repo (OR) operations to ensure the effective implementation of our monetary policy framework. These operations inject liquidity intraday, reinforcing the Bank’s target for the overnight rate.
November 9, 2011 Bank of Canada Releases Background Information on Renewal of the Inflation-Control Target Media Relations Ottawa, Ontario The Bank of Canada today released the document Renewal of the Inflation-Control Target: Background Information, which summarizes the key elements of Canada's inflation-targeting framework. Content Type(s): Press, Press releases
November 28, 2017 Shoring Up the Foundations for a More Resilient Banking System: The Development of Basel III Financial System Review - November 2017 Sheryl King, Alexandra Lai, Tamara Gomes The authors trace the development of the Basel III standards for banking regulation. Basel III builds on two earlier frameworks, in response to weaknesses revealed during the global financial crisis. They highlight how implementation of the standards will underpin greater financial stability and provide a sound foundation for economic growth. Content Type(s): Publications, Financial System Review articles JEL Code(s): G, G1, G2, G21, G28
Dynamic Consumer Cash Inventory Model Staff working paper 2025-22 Kim Huynh, Oleksandr Shcherbakov, André Stenzel We study consumer cash inventory behavior by developing a dynamic model of forward-looking consumers and estimating structural parameters of the model using detailed consumer survey data. Consumers facing holding and withdrawal costs solve a discrete-time continuous-control dynamic programming problem to optimally use cash at the point of sale. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D1, D12, D14, E, E4, E41, E42, G, G2, G21 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Money and payments, Cash and bank notes
Communicating Inflation Uncertainty and Household Expectations Staff working paper 2023-63 Olena Kostyshyna, Luba Petersen We examine the value of direct communication to households about inflation and the uncertainty around inflation statistics. All types of information about inflation are effective at immediately managing inflation expectations, with information about outlooks being more effective and relevant than that about recent inflation and Bank targets. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C9, C93, D, D8, D84, E, E5, E59, E7 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission, Monetary policy tools and implementation
Perceived interconnections between Canadian banks and non-bank financial intermediaries under stress Staff analytical note 2025-26 Javier Ojea Ferreiro I study the links between Canadian banks and non-bank financial intermediaries (NBFIs) by observing co-movements in stock prices. Perceived interconnections increased before the COVID-19 pandemic but have since stabilized, with the strongest ties seen between large banks and NBFIs. The secured credit line extended to Home Trust, a non-bank mortgage lender that experienced severe funding stress in 2017, significantly reduced banks' risk exposure to NBFIs during this episode. Content Type(s): Staff research, Staff analytical notes JEL Code(s): C, C5, C58, G, G0, G01, G2, G21, G23, G3, G32 Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk
January 14, 2022 Using Scenario Analysis to Assess Climate Transition Risk Final Report of the BoC-OSFI Climate Scenario Analysis Pilot
March 6, 2024 Monetary Policy Decision Press Conference Opening Statement Opening statement Tiff Macklem Ottawa, Ontario Governor Tiff Macklem discusses key issues involved in the Governing Council’s deliberations about the policy rate decision. Content Type(s): Press, Speeches and appearances, Opening statements
June 8, 2017 Using Market-Based Indicators to Assess Banking System Resilience Financial System Review - June 2017 Cameron MacDonald, Maarten van Oordt This report reviews the use of quantitative tools to gauge market participants’ assessment of banking system resilience. These measures complement traditional balance-sheet metrics and suggest that markets consider large Canadian banks to be better placed to weather adverse shocks than banks in other advanced economies. Compared with regulatory capital ratios, however, the measures suggest less improvement in banking system resilience since the pre-crisis period. Content Type(s): Publications, Financial System Review articles JEL Code(s): G, G0, G01, G1, G10, G2, G21
January 29, 2025 Bank of Canada announces an adjustment to the deposit rate and some changes to terms and conditions for Overnight Reverse Repo Operations The Bank announced it is making an adjustment to the deposit rate. Effective January 30, the deposit rate will be set at a spread of 5bps below the Bank’s policy interest rate. Content Type(s): Press, Market notices Source(s): Overnight reverse repo operations