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1402 Results

May 17, 2012

Inflation Targeting: The Recent International Experience

In the years since the 2006 renewal of Canada’s inflation-control agreement, monetary policy regimes have faced significant shocks, including the global economic and financial crisis. This article reviews the recent experience with inflation targeting, including the debate about the appropriate role of monetary policy in maintaining financial stability. In the aftermath of the crisis, both […]
Content Type(s): Publications, Bank of Canada Review articles JEL Code(s): E, E3, E31, E5, E52, E58

Unpacking interest rate uncertainty in 2025

Staff analytical paper 2026-25 Harshbir Kaur, Rishi Vala
Amid heightened Canada–US trade tensions in 2025, financial markets showed signs that investors had greater difficulty anticipating near-term Bank of Canada interest rate decisions. We look at the Overnight Index Swap prices and intraday Government of Canada yields to identify the main driver of uncertainty around interest rate decisions.
December 11, 2007

The Zero Bound on Nominal Interest Rates: Implications for Monetary Policy

One of the most important factors that must be considered if countries are thinking about lowering the target level of inflation much below 2 per cent is the zero interest bound. Targeting inflation rates that are too low, the authors note, may restrict the ability of monetary policy to respond to economic shocks by limiting the amount by which interest rates can be eased.
April 29, 2014

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
Thank you for the opportunity for Tiff and me to be here today to share with you highlights from the Bank of Canada’s recent economic outlook. The Bank aims to communicate openly and effectively so that Canadians know how we are achieving our mandate to promote the economic and financial welfare of this country. One […]
April 30, 2014

Opening Statement before the Senate Standing Committee on Banking, Trade and Commerce

Opening statement Stephen S. Poloz Senate Standing Committee on Banking, Trade and Commerce Ottawa, Ontario
Thank you for the opportunity for Tiff and me to be here today to share with you highlights from the Bank of Canada’s recent economic outlook. The Bank aims to communicate openly and effectively so that Canadians know how we are achieving our mandate to promote the economic and financial welfare of this country. One […]

Repo transaction costs and balance sheet frictions

Staff analytical paper 2026-10 Yanis Belkacem, Fabienne Schneider, Adrian Walton
We develop an approach to quantify transaction costs in the repo market using OTC transaction data, where quoted bid-ask spreads are not observable. By estimating effective spreads at the level of individual trades, we construct a novel metric to evaluate intermediation costs across different segments of the market.
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