November 11, 2008
Posts
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November 11, 2008
The Market Impact of Forward-Looking Policy Statements: Transparency vs. Predictability
Central banks continuously strive to improve how they communicate to financial markets and the public in order to increase transparency. For this reason, many central banks have begun to include guidance on the policy rate in the form of forward-looking statements in their communications. This article examines the debate over the usefulness of providing such statements from both theoretical and empirical standpoints. The evidence presented here suggests that the use of forward-looking statements in Bank of Canada communications has made the Bank more predictable, but not necessarily more transparent. -
November 11, 2008
Conference Summary: International Experience with the Conduct of Monetary Policy under Inflation Targeting
Central bankers from inflation-targeting and non-inflation-targeting countries around the world and several distinguished scholars assembled at the Bank of Canada in July 2008 to review the international experience in some detail. This article highlights topics covered in the special lectures and sessions, including how inflation targeting can manage external shocks, various ways in which monetary policy decisions are taken, and the issues of transparency and communications. It also reports on the discussion in the closing panel, which considered options for the future of inflation targeting. -
November 10, 2008
Results of the 10 November 2008 Term PRA Transaction for Private Sector Money Market Instruments
The results of today's term PRA operations are as follows: -
November 10, 2008
The Quest for Confidence: 400 Years of Money – from La Nouvelle France to Canada Today
As we celebrate the 400th anniversary of the founding of Quebec, I thought it would be fitting for me, as a central banker, to take a look at how money has evolved over part of the past four centuries. -
November 10, 2008
Results of the 10 November 2008 Term PRA Transaction
The results of today's term PRA operations are as follows: -
November 10, 2008
Bank of Canada Announces the Minimum Bid Rate for Today's Term PRA Facility for Private Sector Money Market Instruments
The minimum bid rate for 14-day Term PRA Facility for Private Sector Money Market Instruments is 2.980%. -
The Role of Foreign Exchange Dealers in Providing Overnight Liquidity
This paper illustrates that dealers in foreign exchange markets not only provide intraday liquidity, they are key participants in the provision of overnight liquidity. Dealing institutions receive compensation for holding undesired inventory balances in part from the information they receive in customer trades. -
November 7, 2008
Bank of Canada Announces Details of its 28 Day Term PRA Transaction
In accordance with the schedule of term purchase and resale agreement (PRA) auctions announced on 3 November, the Bank of Canada announced today that it will enter into a 28-day term PRA transaction as follows: -
November 6, 2008
Bank of Canada Announces Details of its Term PRA Facility for Private Sector Money Market Instruments
In accordance with the schedule of term purchase and resale agreement (PRA) auctions for private sector money market instruments announced on 31 October, the Bank of Canada announced today that it will enter into a 14-day term PRA transaction for private sector money market instruments as follows: