September 10, 2003 Governor Reviews Measures to Foster Confidence Media Relations Vancouver, British Columbia Bank of Canada Governor David Dodge said today that substantial progress has been made in building investor and consumer confidence in the face of recent economic shocks and corporate finance and accounting scandals. Content Type(s): Press, Press releases
September 10, 2003 Fostering Confidence Remarks David Dodge Vancouver Board of Trade Vancouver, British Columbia It's great to be back in Vancouver and to renew acquaintances at the Board of Trade. I'm going to spend some time today discussing the Bank of Canada's outlook for the Canadian economy and inflation, and how we are responding. But in order to understand the current economic situation, we need to look at some of the extraordinary events of the past year or so and how those events have affected the economy. Content Type(s): Press, Speeches and appearances, Remarks
September 5, 2003 Spruce Meadows Roundtable Remarks David Dodge Spruce Meadows Roundtable Spruce Meadows, Alberta Canada's reliance on foreign trade has required us to be active internationalists for decades. Louis Rasminsky, who went on to become Governor of the Bank of Canada, was one of Canada's delegates at the Bretton Woods Conference that led to the creation of the International Monetary Fund (IMF) and the World Bank. Rasminsky played an important role, formal and informal, at the talks. Content Type(s): Press, Speeches and appearances, Remarks
September 3, 2003 Bank of Canada lowers target for the overnight rate by 1/4 percentage point to 2 3/4 per cent Media Relations Ottawa, Ontario The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 2 3/4 per cent. Content Type(s): Press, Press releases
August 23, 2003 Financial Developments in Canada: Past Trends and Future Challenges Bank of Canada Review - Summer 2003 Charles Freedman, Walter Engert Freedman and Engert focus on the changing pattern of lending and borrowing in Canada in the past thirty to forty years, including the types of financial instruments used and the relative roles of financial institutions and financial markets. They examine how borrowing mechanisms have changed over time and consider the challenges facing the Canadian financial sector, including whether our financial markets are in danger of disappearing because of the size and pre-eminence of U.S. financial markets. Some of the trends examined here include syndicated lending, securitization, and credit derivatives, a form of financial engineering that has become increasingly important in the last few years. They also study bond and equity markets to determine whether Canadian capital markets have been hollowed out or abandoned by Canadian firms and conclude that the data do not provide much support for that view. Content Type(s): Publications, Bank of Canada Review articles
August 23, 2003 Bank of Canada Review - Summer 2003 Cover page Canadian World War I War Bond The $100 10-year bond of the FirstWar Loan is slightly larger than a sheet of legal-sized paper. It forms part of the National Currency Collection, Bank of Canada. Photographed by Gord Carter, Ottawa. Content Type(s): Publications, Bank of Canada Review
August 22, 2003 Measuring Interest Rate Expectations in Canada Bank of Canada Review - Summer 2003 Grahame Johnson 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. Content Type(s): Publications, Bank of Canada Review articles
August 22, 2003 Bank of Canada Operations during Current Power Difficulties During the current power difficulties, the Bank of Canada in Ottawa has been operating from its back-up facility to provide essential services, such as monitoring financial markets and the critical clearing and settlement systems. Content Type(s): Press, Market notices
August 21, 2003 Summer 2003 Consultations Views Sought on Issues Relating to the Design and Operation of The Real Return Bond Program A consultation document on issues relating to the design and operation of the Real Return Bond program, prepared jointly by the Department of Finance and the Bank of Canada, is being published today. Content Type(s): Press, Market notices
August 21, 2003 Real Return Bond Funding Review The Real Return Bond (RRB) program was created in line with the Government's fundamental objective of raising stable, low-cost funding.