April 24, 2020 Bank of Canada Announces Further Enhancements to its Standing Term Liquidity Facility (STLF) Following the launch of the Bank of Canada’s new Standing Term Liquidity Facility (STLF), the terms and conditions have been revised to include term of up to ninety (90) days. Content Type(s): Press, Market notices Source(s): Standing Term Liquidity Facility
Learning, Equilibrium Trend, Cycle, and Spread in Bond Yields Staff Working Paper 2020-14 Guihai Zhao This equilibrium model explains the trend in long-term yields and business-cycle movements in short-term yields and yield spreads. The less-frequent inverted yield curves (and less-frequent recessions) after the 1990s are due to recent secular stagnation and procyclical inflation expectations. Content Type(s): Staff research, Staff working papers Research Topic(s): Asset pricing, Financial markets, Interest rates JEL Code(s): E, E4, E43, G, G0, G00, G1, G12
April 15, 2020 Bank of Canada to Introduce a Provincial Bond Purchase Program The Bank of Canada today announced its intention to introduce a Provincial Bond Purchase Program (PBPP) to further support the liquidity and efficiency of provincial government funding markets. Content Type(s): Press, Market notices Source(s): Provincial Bond Purchase Program
August 31, 2019 Research Update - August 2019 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. Content Type(s): Staff research, Research newsletters
A Comprehensive Evaluation of Measures of Core Inflation in Canada: An Update Staff Discussion Paper 2019-9 Helen Lao, Ceciline Steyn We provide an updated evaluation of the value of various measures of core inflation that could be used in the conduct of monetary policy. We find that the Bank of Canada’s current preferred measures of core inflation—CPI-trim, CPI-median and CPI-common—continue to outperform alternative core measures across a range of criteria. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Inflation and prices, Monetary policy framework JEL Code(s): E, E3, E31, E5, E52
March 19, 2020 Bank of Canada launches the Standing Term Liquidity Facility The Bank of Canada (the Bank) is announcing the launch of its new liquidity facility, the Standing Term Liquidity Facility (STLF), effective March 30, 2020. Content Type(s): Press, Market notices Source(s): Standing Term Liquidity Facility
March 18, 2020 Additional Temporary Changes to the Bank of Canada’s Standing Liquidity Facility Collateral Policy Regarding the Non-Mortgage Loan Portfolio and Settlement Balances Under its Standing Liquidity Facility (SLF), the Bank of Canada is prepared to provide liquidity on a daily basis to financial institutions that participate directly in the payments systems operated by Payments Canada. Loans made by the Bank of Canada must be fully collateralized. Content Type(s): Press, Market notices Source(s): Standing Liquidity Facility
March 18, 2020 Operational details for the upcoming Expansion of the Bank of Canada’s Bond Buyback Program Consistent with the announcement that the Bank of Canada (the Bank), acting as fiscal agent, will extend its buybacks across all benchmark maturity sectors, The Bank is announcing today the following operations for this week and next week Content Type(s): Press, Market notices
March 16, 2020 Operational details for the Bank of Canada’s purchase of Canada Mortgage Bonds (CMBs) in the secondary market Consistent with the announcement that the Bank stands ready, as a proactive measure, to provide support to the Canada Mortgage Bond (CMB) market, the Bank will purchase CMBs in the secondary market through a competitive tender process. Content Type(s): Press, Market notices Source(s): Canada Mortgage Bond Purchase Program
March 17, 2020 Summary of Deliberations of Governing Council, March 13, 2020 Governing Council’s decision to cut interest rates on Friday, 13 March, 2020 took place under unique circumstances. As such, Governing Council is offering this statement of its reasoning from the decision of March 13. Content Type(s): Press, Press releases