Posts

• Settlement Balances Deconstructed

  Staff Discussion Paper 2022-13 Parnell Chu, Grahame Johnson, Scott Kinnear, Karen McGuinness, Matthew McNeely

  Because of the COVID-19 pandemic, public interest in the Bank’s balance sheet and, more specifically, the size of settlement balances, has grown. This paper deconstructs the concept of settlement balances and provides some context on their history, current state and possible future evolution.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Central bank research, Coronavirus disease (COVID-19), Financial markets, Monetary policy implementation JEL Code(s): E, E5, E58, E59, E6, G, G0, G01
• June 7, 2022

  CORRA Advisory Group Meeting (June 7, 2022)

  Content Type(s): Meetings Source(s): CORRA Advisory Group

• Foreign Exchange Interventions: The Long and the Short of It

  Staff Working Paper 2022-25 Patrick Alexander, Sami Alpanda, Serdar Kabaca

  This paper studies the effects of foreign exchange (FX) interventions in a two-region model where governments issue both short- and long-term bonds. We find that the term premium channel dominates the trade balance channel in our calibrated model. As a result, the conventional beggar-thy-neighbor effects of interventions are overturned.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Exchange rate regimes, Exchange rates, Foreign reserves management, International financial markets, International topics JEL Code(s): F, F3, F31, F33, F4, F41
• June 6, 2022

  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 Topic(s): Inflation targets, Monetary policy
• June 6, 2022

  Financial System Survey highlights—Spring 2022

  This article presents the key results from the spring 2022 Bank of Canada Financial System Survey, conducted between February 22 and March 18. The survey included a special section on the potential risks associated with the global normalization of monetary policy.

  Content Type(s): Publications, Financial System Survey
• June 2, 2022

  Economic progress report: Navigating a high inflation environment

  Remarks (delivered virtually) Paul Beaudry Gatineau Chamber of Commerce Gatineau, Quebec

  Bank of Canada Deputy Governor Paul Beaudry talks about the Bank’s latest interest rate announcement and the importance of keeping inflation expectations well anchored to prevent high inflation from becoming entrenched.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Credibility, Expectations, Inflation and prices, Inflation targets, Interest rates, Monetary policy, Monetary policy and uncertainty, Monetary policy implementation, Price stability, Recent economic and financial developments
• June 2, 2022

  Navigating high inflation

  Speech summary Paul Beaudry Gatineau Chamber of Commerce Gatineau, Quebec

  On June 1, the Bank of Canada decided to increase its policy interest rate by half a percentage point. Speaking the next day, Deputy Governor Paul Beaudry explains why inflation has been higher than expected and what we are doing to get it back to our 2% target.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Credibility, Expectations, Inflation and prices, Inflation targets, Interest rates, Monetary policy, Monetary policy and uncertainty, Monetary policy implementation, Price stability, Recent economic and financial developments
• June 2, 2022

  Midi info on Radio-Canada

  

  Paul Beaudry, Deputy Governor of the Bank of Canada
  Interview with Midi info on Radio-Canada

  Content Type(s): Press, Media activities
• June 2, 2022

  Zone économie on Radio-Canada

  

  Paul Beaudry, Deputy Governor of the Bank of Canada
  Interview with Zone économie on Radio-Canada

  Content Type(s): Press, Media activities
• June 1, 2022

  Bank of Canada increases policy interest rate by 50 basis points, continues quantitative tightening

  Media Relations Ottawa, Ontario

  The Bank of Canada today increased its target for the overnight rate to 1½%, with the Bank Rate at 1¾% and the deposit rate at 1½%.

  Content Type(s): Press, Press releases