Posts

• Perceived versus Calibrated Income Risks in Heterogeneous-Agent Consumption Models

  Staff Working Paper 2023-59 Tao Wang

  Perceived income risks reported in a survey of consumer expectations are more heterogeneous and, on average, lower than indirectly calibrated risks based on panel data. They prove to be one explanation for why a large fraction of households hold very little liquid savings and why accumulated wealth is widely unequal across households.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Monetary policy, Monetary policy and uncertainty JEL Code(s): D, D1, D14, E, E2, E21, E7, E71, G, G5, G51
• December 22, 2023

  BNN Bloomberg

  

  Tiff Macklem, Governor of the Bank of Canada
  Interview with BNN Bloomberg

  Content Type(s): Press, Media activities
• December 22, 2023

  The Globe and Mail

  

  Tiff Macklem, Governor of the Bank of Canada
  Interview with The Globe and Mail

  Content Type(s): Press, Media activities
• December 21, 2023

  Summary of Comments – Summer 2023 Canada Mortgage Bonds Consultation

  In Budget 2023, the government announced its intention to hold market consultations on a proposal to consolidate Canada Mortgage Bonds (CMBs) within the regular Government of Canada (GoC) borrowing program.

  Content Type(s): Press, Market notices Source(s): Canada Mortgage Bonds: Government purchases and holdings
• December 21, 2023

  Summary of Comments – Fall 2023 Debt Management Strategy Consultations

  Today, the Fall 2023 Debt Management Strategy Consultations Summary is being published, following the release of the Government of Canada’s Economic and Fiscal Update 2023.

  Content Type(s): Press, Market notices
• December 21, 2023

  How higher interest rates affect inflation

  

  When the Bank of Canada changes its policy interest rate, it affects every part of the economy – but that does not happen all at once. Learn more about how raising and lowering interest rates takes effect through the monetary policy transmission mechanism.

  Content Type(s): Publications, The Economy, Plain and Simple Topic(s): Inflation and prices, Inflation targets, Interest rates, Monetary policy, Monetary policy framework, Monetary policy transmission

• Climate-Related Flood Risk to Residential Lending Portfolios in Canada

  Staff Discussion Paper 2023-33 Craig Johnston, Geneviève Vallée, Hossein Hosseini, Brett Lindsay, Miguel Molico, Marie-Christine Tremblay, Aidan Witts

  We assess the potential financial risks of current and projected flooding caused by extreme weather events in Canada. We focus on the residential real estate secured lending (RESL) portfolios of Canadian financial institutions (FIs) because RESL portfolios are an important component of FIs’ balance sheets and because the assets used to secure such loans are immobile and susceptible to climate-related extreme weather events.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Central bank research, Climate change, Credit risk management, Econometric and statistical methods, Financial institutions, Financial stability JEL Code(s): C, C8, C81, G, G2, G21, Q, Q5, Q54
• December 20, 2023

  Bank of Canada Media Interview – La Presse

  Tiff Macklem, Governor of the Bank of Canada, gave an interview to La Presse’s Hélène Baril.

  Content Type(s): Press, Media advisories

• Understanding the Systemic Implications of Climate Transition Risk: Applying a Framework Using Canadian Financial System Data

  Staff Discussion Paper 2023-32 Gabriel Bruneau, Javier Ojea Ferreiro, Andrew Plummer, Marie-Christine Tremblay, Aidan Witts

  Our study aims to gain insight on financial stability and climate transition risk. We develop a methodological framework that captures the direct effects of a stressful climate transition shock as well as the indirect—or systemic—implications of these direct effects. We apply this framework using data from the Canadian financial system.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Climate change, Economic models, Financial institutions, Financial markets, Financial stability JEL Code(s): C, C6, C63, G, G0, G01, G1, G10, G2, G20, Q, Q5, Q54
• December 20, 2023

  Release of the Bank of Canada’s summary of deliberations

  On Wednesday, December 20, 2023, the Bank of Canada will publish a summary of the deliberations that took place ahead of its interest rate decision on December 6, 2023.

  Content Type(s): Press, Media advisories