Uncategorized

• April 17, 2007

  Update of Securities Eligible as collateral under the Bank of Canada's Standing Liquidity Facility

  Effective immediately, the Bank of Canada has updated its list of securities eligible as collateral under the Standing Liquidity Facility to include foreign issuer Canadian dollar securities. Foreign issuer securities are subject to the conditions and margins as identified in the Bank's collateral policy as posted on the Bank of Canada website.

  Content Type(s): Press, Market notices
• April 16, 2007

  Business Outlook Survey - Spring 2007

  All indicators of business activity (future sales, expected employment, and investment intentions) have increased relative to the previous survey.

  Content Type(s): Publications, Business Outlook Survey
• April 16, 2007

  Clarifications to the Terms of Participation in Auctions for Government Securities Distributors

  The Department of Finance and the Bank of Canada have updated the "Terms of Participation in Auctions for Government Securities Distributors."

  Content Type(s): Press, Market notices
• April 12, 2007

  Addition of Two Government Securities Distributors for Government of Canada Securities

  The Bank of Canada, on behalf of the Government of Canada, announces the addition of two new Government Securities Distributors for Government of Canada marketable bonds and treasury bills.

  Content Type(s): Press, Market notices
• April 12, 2007

  Dealing with Uncertainty in the Conduct of Monetary Policy

  Remarks Sheryl Kennedy Montréal CFA Society Montréal, Quebec

  The main goal of monetary policy is to help the country achieve strong, sustainable economic performance, and, in doing so, to contribute to rising living standards for Canadians. Experience has shown that the best way for a central bank to meet this goal, given the instruments at its disposal, is by keeping inflation low and stable. Low and stable inflation increases confidence in the future value of money, and allows for clear price signals.

  Content Type(s): Press, Speeches and appearances, Remarks
• April 11, 2007

  Changes in the release times for both the call for tenders for cash-management bills (CMBs) and the preliminary International Securities Identification Numbers (ISINs) for regular treasury bills

  In the Debt Management Strategy 2007/08, the government announced that the release time for call for tenders for cash-management bills (CMBs) will be moved from 10:00 (ET) to 09:45 (ET). Effective 16 April 2007, CMBs call for tenders issued on or after this date will be released at 09:45 (ET). The auction timetable can be found on the Bank of Canada website.

  Content Type(s): Press, Market notices

• Term Structure Transmission of Monetary Policy

  Staff Working Paper 2007-30 Sharon Kozicki, P. A. Tinsley

  Under bond-rate transmission of monetary policy, the authors show that a generalized Taylor Principle applies, in which the average anticipated path of policy responses to inflation is subject to a lower bound of unity. This result helps explain how bond rates may exhibit stable responses to inflation, even in periods of passive policy.

  Content Type(s): Staff research, Staff working papers Topic(s): Interest rates, Monetary policy transmission JEL Code(s): E, E3, E5, N, N1

• Exchange Rate Regimes, Globalisation, and the Cost of Capital in Emerging Markets

  Staff Working Paper 2007-29 Antonio Diez de los Rios

  This paper presents a multifactor asset pricing model for currency, bond, and stock returns for ten emerging markets to investigate the effect of the exchange rate regime on the cost of capital and the integration of emerging financial markets. Since there is evidence that a fixed exchange rate regime reduces the currency risk premia demanded by foreign investors, the tentative conclusion is that a fixed exchange rate regime system can help reduce the cost of capital in emerging markets.

  Content Type(s): Staff research, Staff working papers Topic(s): Development economics, Exchange rate regimes JEL Code(s): F, F3, F30, F33, G, G1, G15

• Optimal Monetary Policy and Price Stability Over the Long-Run

  Staff Working Paper 2007-26 Oleksiy Kryvtsov, Malik Shukayev, Alexander Ueberfeldt

  This paper examines the role of monetary policy in an environment with aggregate risk and incomplete markets. In a two-period overlapping-generations model with aggregate uncertainty and nominal bonds, optimal monetary policy attains the ex-ante Pareto optimal allocation.

  Content Type(s): Staff research, Staff working papers Topic(s): Monetary policy framework JEL Code(s): E, E5
• March 29, 2007

  The Bank of Canada Releases Its Annual Report for 2006

  Media Relations Ottawa, Ontario

  The Bank of Canada's Annual Report for 2006 was tabled in the House of Commons today.

  Content Type(s): Press, Press releases