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3572 Results

August 22, 2003

Measuring Interest Rate Expectations in Canada

Financial market expectations regarding future changes in the target for the overnight rate of interest are an important source of information for the Bank of Canada. Financial markets are the mechanism through which the policy rate affects other financial variables, such as longer-term interest rates, the exchange rate, and other asset prices. An accurate measure of their expectations can therefore help policy-makers assess the potential impact of contemplated changes. Johnson focuses on the expectations hypothesis, which measures expectations of future levels of the target overnight rate as implied by current money market yields. Although expectations can be derived from the current yield on any short-term fixed-income asset, some assets have proven to be more accurate predictors than others. The implementation of a policy of fixed-announcements dates has coincided with the increased predictive power of these short-term assets. As a result of this improvement, a relatively simple model of the yield curve can now provide an accurate measure of financial market expectations.
December 16, 2025

Good money and your central bank

Remarks Tiff Macklem The Chamber of Commerce of Metropolitan Montreal Montréal, Quebec
Governor Tiff Macklem discusses the Bank of Canada’s role in ensuring the stability of money in all its forms, from currency to digital payments. He also outlines how keeping inflation low and stable ensures Canadian money retains its purchasing power.
April 12, 2017

Opening Statement before the House of Commons Standing Committee on Finance

Opening statement Stephen S. Poloz House of Commons Standing Committee on Finance Ottawa, Ontario
Good afternoon, Mr. Chairman and committee members. Senior Deputy Governor Wilkins and I are happy to be before you today to discuss the Bank’s Monetary Policy Report (MPR), which we published earlier today. When we were last here in October, I spoke about the factors that caused us to downgrade our outlook for the Canadian […]
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