Exploring the drivers of the real term premium in Canada Staff analytical note 2025-3 Zabi Tarshi, Gitanjali Kumar Changes in the term premium can reflect uncertainty about inflation, growth and monetary policy. Understanding the key factors that influence the term premium is important when central banks make decisions about monetary policy. In this paper, we derive the real term premium from the nominal term premium in Canada. Content Type(s): Staff research, Staff analytical notes JEL Code(s): C, C5, C58, E, E4, E43, E47, G, G1, G12 Research Theme(s): Financial markets and funds management, Market functioning, Monetary policy, Monetary policy framework and transmission
February 5, 2025 CFEC Releases Results of October 2024 Foreign Exchange Volume Survey The Canadian Foreign Exchange Committee (CFEC) released today the results of its October 2024 semi-annual survey of foreign exchange volumes in Canada. Content Type(s): Press, Market notices Source(s): Canadian Foreign Exchange Committee
Monetary policy, interest rates and the Canadian dollar Staff analytical note 2025-2 Jean-Sébastien Fontaine, Ingomar Krohn, James Kyeong, Rishi Vala, Konrad Zmitrowicz Changes in domestic interest rates affect the value of the Canadian dollar less than changes in the risk premium do. These variations often occur when a broad shift in risk sentiment occurs in global markets. Ultimately, the value of the currency reflects long-term, slow-moving features of the economies. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, E43, F, F3, F31, G, G1, G12 Research Theme(s): Financial markets and funds management, International markets and currencies, Monetary policy, Monetary policy framework and transmission
February 4, 2025 CFIF Meeting (February 4, 2025) Content Type(s): Meetings Source(s): Canadian Fixed-Income Forum
February 3, 2025 Understanding quantitative easing QE is a tool that encourages spending and investment—helping us to achieve our inflation target by stabilizing the economy. Content Type(s): Explainers Subject(s): Monetary policy, Economic models, Economy/Economic growth, Inflation, Inflation targeting framework
February 3, 2025 University of Ottawa crowned National Champion of The Governor’s Challenge The Bank of Canada is pleased to announce the University of Ottawa has won the tenth annual Governor’s Challenge, a national student competition in which teams simulate the role of advisor to the Bank’s Governing Council. Content Type(s): Press, Announcements Source(s): The Governor's Challenge
January 31, 2025 Reviews and appeals This supervisory policy describes the Bank of Canada’s process to conduct reviews, as set out in the RPAA (a “prescribed review”), and outlines what individuals, entities and payment service providers should expect if they request a prescribed review of a retail payments supervision decision. Content Type(s): Retail payments materials, Supervisory policies Subject(s): Retail payments, Enforcement, Registration
January 31, 2025 Changes to Assets Eligible as Collateral under the Bank of Canada’s Standing Liquidity Facility As announced on June 11, 2024, the Bank of Canada made Secured General Collateral (SGC) Notes eligible as collateral under the Standing Liquidity Facility (SLF), pending necessary system enhancements. Content Type(s): Press, Market notices Source(s): Standing Liquidity Facility
January 31, 2025 Glossary of terms about retail payments Read the definitions of terms about retail payments supervision used in Bank of Canada supervisory policies and guidelines.
High-Cost Consumer Credit: Desperation, Temptation and Default Staff working paper 2025-6 Joaquín Saldain I study the welfare consequences of regulations on high-cost consumer credit in the United States and find that borrowing limits have distributional impacts on households with self-control issues. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E2, E7, E71, G, G5, G51 Research Theme(s): Financial system, Financial stability and systemic risk, Household and business credit