May 15, 2023
Staff research, Publications
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Potential output and the neutral rate in Canada: 2023 assessment
We expect that potential output growth will rebound from 1.4% in 2022 to 2.2% on average between 2023 and 2026. We revised down our estimates of growth over 2022–25 relative to the April 2022 assessment. The Canadian nominal neutral rate remains unchanged—in the range of 2% to 3%. -
Assessing global potential output growth and the US neutral rate: April 2023
We expect global potential output growth to increase from 2.5% in 2022 to 2.8% by 2026. Compared with the April 2022 staff assessment, global potential output growth is marginally slower. The current range for the US neutral rate is 2% to 3%, unchanged from the last annual assessment. -
How Banks Create Gridlock to Save Liquidity in Canada's Large Value Payment System
We show how participants in Canada’s new high-value payment system save liquidity by exploiting the new gridlock resolution arrangement. The findings have important implications for the design of these systems and shed light on financial institutions’ liquidity preference. -
A Review of the Bank of Canada’s Support of Key Financial Markets During the COVID-19 Crisis
The COVID-19 pandemic placed unprecedented strain on the global financial system. We describe how the Bank of Canada responded to the rapidly deteriorating liquidity in core Canadian fixed-income markets. -
April 26, 2023
Summary of Governing Council deliberations: Fixed announcement date of April 12, 2023
This is an account of the deliberations of the Bank of Canada’s Governing Council leading to the monetary policy decision on April 12, 2023. -
April 24, 2023
Annual Report 2022
The Annual Report outlines the Bank’s activities and achievements in 2022. It includes the financial statements and a message from Governor Tiff Macklem. -
April 24, 2023
Bank of Canada Disclosure of Climate-Related Risks 2022
This report lays out elements of the Bank’s strategy related to climate change and details how the issue will be managed holistically across the organization, following the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures. -
Pricing Indefinitely Lived Assets: Experimental Evidence
We study the trading of an asset with bankruptcy risk. The traded price of the asset is, on average, 40% of the expected total dividend payments. We investigate which economic models can explain the low traded price. -
April 24, 2023
Market Participants Survey—First Quarter of 2023
The Market Participants Survey results are based on questionnaire responses from about 30 financial market participants.