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3504 Results

The aggregate and heterogeneous effects of responding to shelter inflation

Staff analytical paper 2026-5 Michael Irwin, Matías Vieyra
This note examines how monetary policy responses to shelter inflation affect both the overall economy and different households. We find that the aggregate macroeconomic effects of responding to shelter inflation are modest, whereas the redistributive consequences across households are substantially larger.

How to Manage Macroeconomic and Financial Stability Risks: A New Framework

Staff analytical note 2018-11 Alexander Ueberfeldt, Thibaut Duprey
Financial system vulnerabilities increase the downside risk to future GDP growth. Macroprudential tightening significantly reduces financial stability risks associated with vulnerabilities. Monetary policy faces a trade-off between financial stability and macroeconomic risks.
February 11, 2025

Governing Council and Senior Management

The Governing Council is the policy-making body of the Bank. It consists of the Governor, Senior Deputy Governor, and four Deputy Governors. It is responsible for monetary policy, decisions aimed at promoting a sound and stable financial system, and the strategic direction of the Bank.

Updated Methodology for Assigning Credit Ratings to Sovereigns

We update the Bank of Canada’s credit rating methodology for sovereigns, including our approach to assessing their fiscal position and monetary policy flexibility. We also explicitly consider climate-related factors.
August 18, 2011

Bank Balance Sheets, Deleveraging and the Transmission Mechanism

The author investigates the influence of bank capital on economic activity, using a macroeconomic model that incorporates an explicit role for financial intermediation. The analysis focuses on the role of a “bank-capital channel” in propagating and amplifying monetary policy actions and other shocks. The question of whether weaker bank balance sheets make the economy more vulnerable to adverse shocks is examined, together with the impact of initiatives, such as countercyclical capital buffers, on the transmission of monetary policy and other shocks to the real economy.
September 30, 2015

Overnight reverse repos

The Bank conducts overnight reverse repo (ORR) operations to ensure the effective implementation of our monetary policy framework. These operations withdraw liquidity intraday, reinforcing the Bank’s target for the overnight rate.

Making It Real: Bringing Research Models into Central Bank Projections

Staff discussion paper 2023-29 Marc-André Gosselin, Sharon Kozicki
Macroeconomic projections and risk analyses play an important role in guiding monetary policy decisions. Models are integral to this process. This paper discusses how the Bank of Canada brings research models and lessons learned from those models into the central bank projection environment.
August 26, 2025

Inflation targeting: A framework for today and tomorrow

Speech summary Tiff Macklem Bank of Mexico 100ᵗʰ Anniversary Seminar Mexico City, Mexico
Governor Tiff Macklem discusses how inflation targeting became a leading strategy among central banks for maintaining price stability. He also talks about structural change ahead, shifts in global trade and ensuring monetary policy is fit for the future.
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