Annual Report 2023

DYNAMIC | ENGAGED | TRUSTED


Governor’s foreword

In 2023, the Bank of Canada made considerable progress in the fight against inflation and laid the groundwork for the return to price stability. But even as inflation came down considerably, increases in the cost of living continued to squeeze Canadians. For many, higher interest rates added to their burden. The challenge for the Bank was to set our policy interest rate high enough to wring high inflation out of the economy, but not so high that we stifled it. Global events ranging from foreign bank failures to the war in Israel and Gaza added uncertainty and brought new risks.



In focus

The monetary policy decision-making process

One of the Bank of Canada’s core objectives is to keep inflation low, stable and predictable. The Bank implements monetary policy to achieve this objective. More specifically, it uses its policy interest rate to control inflation.

Resilience partnerships

The Bank of Canada plays a leadership role in bringing together stakeholders from across the country to promote the operational and cyber resilience of the financial sector.

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