September 30, 2022
Posts
-
-
September 28, 2022
Bank of Canada response to detailed review report
The Bank of Canada thanks the International Monetary Fund (IMF) for undertaking its thorough and thoughtful pilot review of the Bank under the new Central Bank Transparency Code (CBTC). We welcome the publication of this final review report by the IMF Mission Team and the associated recommendations. -
September 28, 2022
Release of the Bank of Canada’s response to IMF transparency review
On Wednesday, September 28, 2022, the International Monetary Fund (IMF) will publish a Detailed Review Report of the Bank of Canada’s transparency practices, as part of the Central Bank Transparency Code pilot program. -
September 28, 2022
Bank of Canada welcomes IMF report following transparency review
The Bank of Canada today welcomed the publication by the International Monetary Fund (IMF) of its final report summarizing its pilot review of the Bank’s transparency practices. -
-
Harnessing the benefit of state-contingent forward guidance
A low level of the neutral rate of interest increases the likelihood that a central bank’s policy rate will reach its effective lower bound (ELB) in future economic downturns. In a low neutral rate environment, using an extended monetary policy toolkit including forward guidance helps address the ELB challenge. Using the Bank’s Terms-of-Trade Economic Model, we assess the benefits and limitations of a state-contingent forward guidance implemented within a flexible inflation targeting framework. -
Behavioral Learning Equilibria in New Keynesian Models
We introduce behavioral learning equilibria (BLE) into DSGE models with boundedly rational agents using simple but optimal first order autoregressive forecasting rules. The Smets-Wouters DSGE model with BLE is estimated and fits well with inflation survey expectations. As a policy application, we show that learning requires a lower degree of interest rate smoothing. -
How does the Bank of Canada’s balance sheet impact the banking system?
We examine how changes in the Bank of Canada’s balance sheet impact the banking system. Quantitative easing contributed to an increase in the size of the banking system’s balance sheet and an improvement in bank liquidity coverage ratios. Quantitative tightening is expected to partially reverse these impacts. The banking system will have to adjust its liquidity management strategy in response. -
September 21, 2022
2nd Workshop on Monetary Policy Research
Workshop held on September 21 and 22, 2022. -
September 20, 2022
Bank of Canada Media Interview – Zone économie
Paul Beaudry, Deputy Governor of the Bank of Canada, gave an interview to Radio-Canada’s Andrée-Anne St-Arnaud. The interview will air today on Zone économie. Please check local listings or go to https://ici.radio-canada.ca/ for more information.