May 20, 2020
Posts
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May 19, 2020
Operational details for upcoming secondary market purchases of Government of Canada securities (May 25-June 5)
As previously announced, the Bank of Canada (the Bank) launched on April 1, 2020 a program to purchase Government of Canada securities in the secondary market – the Government Bond Purchase Program (GBPP). -
How Do Mortgage Rate Resets Affect Consumer Spending and Debt Repayment? Evidence from Canadian Consumers
We study the causal effect of mortgage rate changes on consumer spending, debt repayment and defaults during an expansionary and a contractionary monetary policy episode in Canada. We find asymmetric responses of consumer durable spending, deleveraging and defaults. These findings help us to understand household sector response to interest rate changes. -
Scenario Analysis and the Economic and Financial Risks from Climate Change
This paper adapts climate-economy models that have been applied in other contexts for use in climate-related scenario analysis. We consider illustrative scenarios for the global economy that could generate economic and financial risks. Our results suggest there are significant economic risks from climate change and the move to a low-carbon economy. -
Identifying Aggregate Shocks with Micro-level Heterogeneity: Financial Shocks and Investment Fluctuation
This paper identifies aggregate financial shocks and quantifies their effects on business investment based on an estimated DSGE model with firm-level heterogeneity. On average, financial shocks contribute only 3% of the variation in U.S. public firms’ aggregate investment. -
May 19, 2020
Reporting on Provincial Bond Purchase Program purchases
The Bank of Canada has updated its reporting on assets purchased for the Provincial Bond Purchase Program (PBPP). The PBPP supports the liquidity and efficiency of provincial government funding markets. -
May 19, 2020
Operational details for the Corporate Bond Purchase Program
As announced on April 15, 2020, the Bank of Canada is launching its Corporate Bond Purchase Program (CBPP), effective May 26, 2020. -
May 15, 2020
Release of the 2019 Bank of Canada FMI Oversight Activities Annual Report
The Bank of Canada today published the Bank of Canada Oversight Activities for Financial Market Infrastructures 2019 Annual Report (the Report) on its oversight of payment clearing and settlement systems, which are also known as financial market infrastructures (FMIs). -
May 14, 2020
Release of the Financial System Review
Press conference following the release of the Financial System Review. -
May 14, 2020
Financial System Review Summary—2020
This issue of the Financial System Review focuses on the impact of COVID 19. The pandemic presents an unprecedented shock to the Canadian economy. This report identifies the effects on the Canadian financial system and explains how recent actions by the Bank and other policy-makers are helping to manage them. It further describes how a resilient financial system can help households and businesses smooth the effects of the COVID-19 shock and prepare for a robust recovery.