Posts

• March 12, 2025

  Bank of Canada Media Interview – The Globe and Mail

  Tiff Macklem, Governor of the Bank of Canada, gave an interview to Mark Rendell of the Globe and Mail, which will be published online and in the newspaper.

  Content Type(s): Press, Media advisories
• March 12, 2025

  Bank of Canada Media Interview – La Presse

  Tiff Macklem, Governor of the Bank of Canada, gave an interview to La Presse’s Hélène Baril.

  Content Type(s): Press, Media advisories
• March 12, 2025

  Bank of Canada reduces policy rate by 25 basis points to 2¾%

  Media Relations Ottawa, Ontario

  The Bank of Canada today reduced its target for the overnight rate to 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%.

  Content Type(s): Press, Press releases
• March 12, 2025

  How Canadian businesses and households are reacting to the trade conflict

  To better understand how the trade conflict initiated by the US administration is affecting the economic decisions of Canadians, the Bank of Canada has enhanced its consultations with businesses and households.

  Content Type(s): Publications
• March 12, 2025

  Bank of Canada Interest Rate Announcement

  On Wednesday, March 12, 2025, the Bank of Canada will announce its decision on the target for the overnight rate. A press release will provide a brief explanation of the decision.

  Content Type(s): Press, Media advisories
• March 12, 2025

  Monetary Policy Decision Press Conference Opening Statement

  Opening statement Tiff Macklem Ottawa, Ontario

  Governor Tiff Macklem discusses key issues involved in the Governing Council’s deliberations about the monetary policy decision.

  Content Type(s): Press, Speeches and appearances, Opening statements
• March 10, 2025

  Price check: Inflation in Canada

  Sharon Kozicki, Jill Vardy, Laurence Savoie-Chabot

  Why prices change, and what it means for the economy.

  Content Type(s): Publications, The Economy, Plain and Simple Research Topic(s): Business fluctuations and cycles, Credibility, Expectations, Inflation and prices, Inflation targets, Inflation: costs and benefits, Monetary policy framework, Monetary policy transmission, Price stability

• The Prudential Toolkit with Shadow Banking

  Staff Working Paper 2025-9 Kinda Hachem, Martin Kuncl

  Can regulators keep pace with banks’ creative regulatory workarounds? Our analysis unpacks the trade-offs between fixed regulations and crisis-triggered rules, showing that the latter are especially prone to circumvention—and can trigger larger, costlier bailouts.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions, Financial stability, Financial system regulation and policies JEL Code(s): D, D6, D62, E, E6, E61, G, G0, G01, G2, G21, G28

• Estimating the inflation risk premium

  Staff Analytical Note 2025-9 Bruno Feunou, Gitanjali Kumar

  Is there a risk of de-anchoring of inflation expectations in the near term? We estimate the inflation risk premium using traditional asset pricing models to answer this question. The risk of de-anchoring is elevated compared with the period before the COVID-19 pandemic and is higher in the United States than in Canada.

  Content Type(s): Staff research, Staff analytical notes Research Topic(s): Asset pricing, Econometric and statistical methods JEL Code(s): C, C2, C22, C5, C58, G, G1, G12

• Natural disasters and inflation in Canada

  Staff Analytical Note 2025-8 Thibaut Duprey, Victoria Fernandes

  How do storms, floods and wildfires affect consumer prices? In the short term, natural disasters can significantly increase volatility in Canada-wide inflation. Over the long term, natural disasters influence inflation in shelter prices, especially when provincial output is already weak relative to trend.

  Content Type(s): Staff research, Staff analytical notes Research Topic(s): Central bank research, Climate change, Inflation and prices JEL Code(s): E, E3, E31, Q, Q5, Q54