December 7, 2022
Posts
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December 7, 2022
Bank of Canada increases policy interest rate by 50 basis points, continues quantitative tightening
The Bank of Canada today increased its target for the overnight rate to 4¼%, with the Bank Rate at 4½% and the deposit rate at 4¼%. -
December 7, 2022
Bank of Canada Interest Rate Announcement
On Wednesday, December 7, 2022, the Bank of Canada will announce its decision on the target for the overnight rate. A press release will provide a brief explanation of the decision. -
November 30, 2022
Research Update - November 2022
This monthly newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website. -
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November 29, 2022
Quarterly Financial Report - Third Quarter 2022
Quarterly Financial Report - Third Quarter 2022 - For the period ended September 30, 2022 -
Regulatory Requirements of Banks and Arbitrage in the Post-Crisis Federal Funds Market
This paper explains the nature of interest rates in the U.S. federal funds market after the 2007-09 financial crisis. We build a model of the over-the-counter lending market that incorporates new aspects of the financial system: abundance of liquidity, different regulatory standards for banks, and arbitrage opportunities created by limited access to the facility granting interest on excess reserves. -
Stablecoins and Their Risks to Financial Stability
What risks could stablecoins pose to the financial system? We argue that the stabilization mechanisms of stablecoins give rise to the risk of confidence runs, which can propagate to broader cryptoasset markets and the traditional financial sector. We also argue that stablecoins can contribute to financial stability risks by facilitating the buildup of leverage and liquidity mismatch in decentralized finance. Such risks cannot be addressed by ensuring the price stability of stablecoins alone. Finally, we explore the potential implications of stablecoins for the current system of bank-intermediated credit and for monetary policy. -
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November 23, 2022
Parliamentary Appearance by the Governor and the Senior Deputy Governor of the Bank of Canada
On Wednesday, November 23, 2022, the Governor of the Bank of Canada, Tiff Macklem, will appear before the House of Commons Standing Committee on Finance. He will be accompanied by Senior Deputy Governor Carolyn Rogers.