Housing Affordability and Parental Income Support Staff Working Paper 2024-28 Jason Allen, Kyra Carmichael, Robert Clark, Shaoteng Li, Nicolas Vincent In many countries, the cost of housing has greatly outpaced income growth, leading to a housing affordability crisis. Leveraging Canadian loan-level data and quasi-experimental variation in payment-to-income constraints, we document an increasing reliance of first-time homebuyers on financial help from their parents, through mortgage co-signing. We show that parental support can effectively relax borrowing constraints—potentially to riskier borrowers. Content Type(s): Staff research, Staff working papers Research Topic(s): Financial services, Financial system regulation and policies, Housing JEL Code(s): D, D6, D64, E, E2, E21, E24, G, G1, G18, G5, G51
July 25, 2024 Financial Post Tiff Macklem, Governor of the Bank of Canada Interview with the Financial Post Content Type(s): Press, Media activities
Central Bank Digital Currency and Transmission of Monetary Policy Staff Working Paper 2024-27 Saroj Bhattarai, Mohammad Davoodalhosseini, Zhenning Zhao Using a general equilibrium model with nominal rigidities and financial frictions, we explore whether introducing a central bank digital currency (CBDC) affects the transmission of monetary policy, and how the effects depend on CBDC design features. We also study whether paying interest on central bank liabilities is contractionary or expansionary. Content Type(s): Staff research, Staff working papers Research Topic(s): Digital currencies and fintech, Interest rates, Monetary policy, Monetary policy framework, Monetary policy transmission JEL Code(s): E, E3, E31, E4, E5, E58, G, G2, G21, G5, G51
July 24, 2024 Radio-Canada Midi info Nicolas Vincent, Deputy Governor of the Bank Interview with Midi info on Radio-Canada Content Type(s): Press, Media activities
July 24, 2024 Bank of Canada Media Interview – Radio-Canada Nicolas Vincent, Deputy Governor of the Bank of Canada, gave an interview to Radio-Canada première’s Midi info. Content Type(s): Press, Media advisories
July 24, 2024 Bank of Canada Media Interview – Financial Post Tiff Macklem, Governor of the Bank of Canada, gave an interview to Jordan Gowling of the Financial Post. Content Type(s): Press, Media advisories
July 24, 2024 Bank of Canada reduces policy rate by 25 basis points to 4½% Media Relations Ottawa, Ontario The Bank of Canada today reduced its target for the overnight rate to 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank is continuing its policy of balance sheet normalization. Content Type(s): Press, Press releases