Potential output and the neutral rate in Canada: 2021 update Staff Analytical Note 2021-6 Dany Brouillette, Guyllaume Faucher, Martin Kuncl, Austin McWhirter, Youngmin Park We expect potential output growth to be higher than in the October 2020 reassessment. By 2024, growth will be slightly above its average growth from 2010 to 2019. We assess that the Canadian nominal neutral rate continues to lie in the range of 1.75 to 2.75 percent. Content Type(s): Staff research, Staff analytical notes Topic(s): Economic models, Interest rates, Labour markets, Monetary policy, Potential output, Productivity JEL Code(s): E, E2, E23, E24, E3, E37, E4, E43, E5, E52
Assessing global potential output growth and the US neutral rate: April 2021 Staff Analytical Note 2021-5 Thomas J. Carter, Xin Scott Chen, Ali Jaffery, Christopher Hajzler, Jonathan Lachaine, Peter Shannon, Subrata Sarker, Graeme Westwood, Beiling Yan We expect global potential output growth to rise to 3 percent by 2022. Relative to the last assessment in October 2020, potential output growth has been revised up across all the regions. The range of the US neutral rate remains unchanged relative to the autumn 2020 assessment. Content Type(s): Staff research, Staff analytical notes Topic(s): Interest rates, Monetary policy, Potential output, Productivity JEL Code(s): E, E1, E2, E4, E5, F, F0, O, O4
April 21, 2021 Monetary Policy Report – April 2021 As the economy recovers from the COVID-19 pandemic, the Bank is forecasting growth of around 6 ½ percent this year, slowing to about 3 ¾ percent in 2022 and 3 ¼ percent in 2023. Content Type(s): Publications, Monetary Policy Report
April 19, 2021 Operational details for upcoming secondary market purchases of Government of Canada securities (April 26-May 7) As previously announced, the Bank of Canada (the Bank) launched on April 1, 2020 a program to purchase Government of Canada securities in the secondary market – the Government Bond Purchase Program (GBPP). Content Type(s): Press, Market notices Source(s): Government of Canada Bond Purchase Program
Adoption of Digital Technologies: Insights from a Global Survey Initiative Staff Discussion Paper 2021-7 James Fudurich, Lena Suchanek, Lise Pichette Firms are at the forefront of adopting new technology. Using survey data from a global network of central banks, we assess the effects of digitalization on firms’ pricing and employment decisions. Content Type(s): Staff research, Staff discussion papers Topic(s): Firm dynamics, Inflation and prices, Labour markets JEL Code(s): D, D2, D22, E, E3, E31, J, J2, J21, O, O3, O33
April 12, 2021 Business Outlook Survey—Spring 2021 Results from the spring Business Outlook Survey suggest that business sentiment continues to improve. Firms reported less uncertainty related to the COVID-19 pandemic and strengthening demand from weak levels. Still, the recovery remains uneven, with firms tied to high-contact services facing ongoing challenges. Content Type(s): Publications, Business Outlook Survey
April 12, 2021 Canadian Survey of Consumer Expectations—First Quarter of 2021 The Canadian Survey of Consumer Expectations (CSCE) collects respondents’ views on inflation, the labour market and household finances. The survey for the first quarter of 2021 was conducted from February 15 to March 4, 2021. This period coincides with news of temporary delays in COVID-19 vaccinations in Canada and growing risks from new variants of the virus. The survey was completed before the most recent wave of infections and lockdowns in the largest provinces. Like the previous three surveys, the 2021 first-quarter survey included questions on the impacts of the pandemic and the measures to contain its spread. This survey also asked respondents about their expected economic and social activities once the majority of Canadians have received their COVID-19 vaccine. Similar to the report for the fourth quarter of 2020, this report also provides some details by demographic characteristics. Content Type(s): Publications, Canadian Survey of Consumer Expectations