April 16, 2020
Uncategorized
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Learning, Equilibrium Trend, Cycle, and Spread in Bond Yields
This equilibrium model explains the trend in long-term yields and business-cycle movements in short-term yields and yield spreads. The less-frequent inverted yield curves (and less-frequent recessions) after the 1990s are due to recent secular stagnation and procyclical inflation expectations. -
April 16, 2020
CORRA illustrative time series updated to include additional data from February to April, 2020
As announced on February 18, 2020, the Bank of Canada will take over the responsibility for publishing the Canadian Overnight Repo Rate Average (CORRA), effective Monday, June 15, 2020. -
Interest Rate Uncertainty as a Policy Tool
We study a novel policy tool—interest rate uncertainty—that can be used to discourage inefficient capital inflows and to adjust the composition of external account between shortterm securities and foreign direct investment (FDI). -
Multi-Product Pricing: Theory and Evidence from Large Retailers in Israel
Standard theories of price adjustment are based on the problem of a single-product firm, and therefore they may not be well suited to analyze price dynamics in the economy with multiproduct firms. -
April 15, 2020
Bank of Canada to Introduce a Provincial Bond Purchase Program
The Bank of Canada today announced its intention to introduce a Provincial Bond Purchase Program (PBPP) to further support the liquidity and efficiency of provincial government funding markets. -
April 15, 2020
Bank of Canada announces increase in the amount of Government of Canada treasury bills it acquires at auction
The Bank of Canada announced today that, to support continued liquidity and efficient functioning of the federal government’s treasury bill program, it is temporarily increasing the amount of treasury bills it acquires at auctions to up to 40 per cent, effective immediately. -
April 15, 2020
Bank of Canada to Introduce a Corporate Bond Purchase Program
In order to support the efficient and continuous functioning of financial markets, the Bank of Canada is announcing its intention to introduce a Corporate Bond Purchase Program (CBPP). -
April 15, 2020
Monetary Policy Report Press Conference Opening Statement
Governor Stephen S. Poloz discusses key issues involved in the Governing Council’s deliberations about the policy rate decision and the MPR. -
April 15, 2020
Bank of Canada maintains overnight rate target and unveils new market operations
The Bank of Canada today maintained its target for the overnight rate at ¼ percent, which the Bank considers its effective lower bound. The Bank Rate is correspondingly ½ percent and the deposit rate is ¼ percent. The Bank also announced new measures to provide additional support to Canada’s financial system.