Is the Bank of Canada independent from government?

The Bank of Canada is a Crown corporation that is owned by the federal government, but we are separate from the political process.

Independent from government

The Bank of Canada Act outlines how the Bank is structured and managed and what our objectives should be. And every five years, the Bank and the Government of Canada review and renew the agreement on Canada’s monetary policy framework.

But how we implement monetary policy is up to us. This is important because it allows us to remain separate from politics and make interest rate decisions that focus on the strength of Canada’s economy over the long term.

Although we’re independent, we’re still accountable—to Parliament, the government and all Canadians.

How does this affect you?

Our monetary policy independence means we can look ahead and take medium- and long-term perspectives on the economy. This is essential to implementing effective policy that keeps inflation low, stable and predictable. And that, in turn, contributes to a healthy, steady economy—and your ability to plan your financial future.

Accountable to Canadians

Clear and transparent communication is part of our accountability to you. The effectiveness of the Bank’s monetary policy decisions depends on Canadians’ understanding of what we do and why we do it.

To keep Canadians informed, we hold a press conference after every interest rate decision. And through our regional offices and outreach activities, we meet with and listen to Canadians across the country.

We also regularly publish:

• our monetary policy decisions, followed by a summary of the discussions Governing Council had that led to each decision
• an updated outlook for the economy and inflation every three months in our Monetary Policy Report
• a quarterly financial report as well as an annual report that includes audited financial statements
• information about our corporate planning, policies and guidelines, accountability and disclosure, external and internal audits, and risk management approaches
• our business, consumer and market participant survey results
• economic research and analysis by Bank staff
• our assessment of the state of financial stability in Canada

In addition to these regular publications, we keep Parliament and the government informed by appearing before House of Commons and Senate committees and submitting audited financial statements each year, accompanied by an annual report.