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8954 Results

Uncovering the use of haircuts in the Canadian repo market

Staff analytical paper 2026-39 Sadia Anum, Jabir Sandhu, Adrian Walton
We show that haircuts are rarely used in the Canadian dealer-to-client repo market and their usage did not increase materially during past stress events. Usage is concentrated among wealth managers and some foreign official institutions, likely reflecting regulatory or internal requirements.

When supply shocks make inflation harder to control

Sparks at Bank article Oleksiy Kryvtsov, Rodrigo Sekkel
Supply disruptions were a key driver of inflation during the pandemic. If such disruptions occur more often in the future, they could lead to more frequent and persistent periods of high inflation. Central banks could then find it harder to bring inflation back to target while supporting economic activity.
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