March 13, 2020
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March 13, 2020
Bank of Canada lowers overnight rate target to ¾ percent
The Bank of Canada today lowered its target for the overnight rate by 50 basis points to ¾ percent, effective Monday, March 16, 2020. The Bank Rate is correspondingly 1 percent and the deposit rate is ½ percent. This unscheduled rate decision is a proactive measure taken in light of the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent sharp drop in oil prices. -
March 13, 2020
Bank of Canada’s Intention to Introduce a Bankers’ Acceptance Purchase Facility
In order to support the continuous functioning of financial markets, the Bank of Canada (Bank) is announcing its intention to launch the Bankers’ Acceptance Purchase Facility (BAPF). -
Demand for Payment Services and Consumer Welfare: The Introduction of a Central Bank Digital Currency
Using a two-stage model, we study the determinants of Canadian consumers’ choices of payment method at the point of sale. We estimate consumer preferences and adoption costs for various combinations of payment methods. We analyze how introducing a central bank digital currency would affect the market equilibrium. -
March 13, 2020
Press Conference Opening Statement – March 13, 2020
The Bank of Canada is contributing to the collective effort to support the Canadian economy and financial system, and to ensure credit channels remain open. -
March 12, 2020
Bank of Canada Announces the Expansion of its Bond Buyback Program and Term Repo Operations
In order to support the continuous functioning of financial markets through the provision of liquidity, the Bank of Canada announced two measures today. -
A Uniform Currency in a Cashless Economy
A number of questions can arise when considering the implications of a cashless society. This note considers whether cash is necessary for a uniform currency. -
A Portfolio-Balance Model of Inflation and Yield Curve Determination
How does the supply of nominal government debt affect the macroeconomy? To answer this question, we propose a portfolio-balance model of the yield curve in which inflation is determined through an interest rate rule. -
March 9, 2020
Bank of Canada announces members of Advisory Council for next $5 bank note
The independent Advisory Council will develop a short list of iconic Canadians who could be featured on the next bank note. -
IMPACT: The Bank of Canada’s International Model for Projecting Activity
We present the structure and features of the International Model for Projecting Activity (IMPACT), a global semi-structural model used to conduct projections and policy analysis at the Bank of Canada. Major blocks of the model are developed based on the rational error correction framework of Kozicki and Tinsley (1999), which allows the model to strike a balance between theoretical structure and empirical performance.