March 13, 2020 Canada outlines measures to support the economy and the financial sector Today, Minister of Finance Bill Morneau, Governor of the Bank of Canada Stephen Poloz, and Superintendent of Financial Institutions Jeremy Rudin outlined a coordinated package of measures being taken by financial sector partners to support the functioning of markets and continued access to financing for Canadian businesses. Content Type(s): Press, Press releases
March 13, 2020 Bank of Canada lowers overnight rate target to ¾ percent Media Relations Ottawa, Ontario 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. Content Type(s): Press, Press releases
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). Content Type(s): Press, Market notices Source(s): Bankers’ Acceptance Purchase Facility
March 13, 2020 Previous PIVOT challenges We partnered with individuals and businesses to come up with innovative ways to solve challenges we face as a central bank. Check out the results.
Demand for Payment Services and Consumer Welfare: The Introduction of a Central Bank Digital Currency Staff Working Paper 2020-7 Kim Huynh, Jozsef Molnar, Oleksandr Shcherbakov, Qinghui Yu 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. Content Type(s): Staff research, Staff working papers Topic(s): Bank notes, Digital currencies and fintech, Financial services JEL Code(s): C, C5, C51, E, E4, E42, L, L1, L14, L5, L52
March 13, 2020 Press Conference Opening Statement – March 13, 2020 Opening statement Stephen S. Poloz Ottawa, Ontario 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. Content Type(s): Press, Speeches and appearances, Opening statements Topic(s): Coronavirus disease (COVID-19)
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. Content Type(s): Press, Market notices Source(s): Term repo operations
March 12, 2020 Partnerships in Innovation and Technology (PIVOT) Program We’re looking for innovators to help us respond to challenges that may not have a commercial solution readily available.
A Uniform Currency in a Cashless Economy Staff Analytical Note 2020-7 Walter Engert, Ben Fung 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. Content Type(s): Staff research, Staff analytical notes Topic(s): Bank notes, Digital currencies and fintech, Financial services, Payment clearing and settlement systems JEL Code(s): E, E4, E41, E42, E5