October 11, 2024 Canadian Survey of Consumer Expectations—Third Quarter of 2024 Consumers’ perceptions of current inflation and their expectations for inflation over the next year have declined this quarter, although they remain higher than they were before the COVID‑19 pandemic. Perceptions of financial stress have improved. And, given recent interest rate cuts and lower inflation, fewer consumers reported reducing their spending. However, consumers expect interest rates to remain elevated, which is affecting their spending decisions. Perceptions of the labour market have weakened further, with young consumers reporting a more pronounced deterioration than others. Still, overall, job prospects are close to survey averages. Content Type(s): Publications, Canadian Survey of Consumer Expectations
October 10, 2024 Bank of Canada to begin publishing web-based Monetary Policy Report The Bank of Canada will begin releasing its Monetary Policy Report (MPR) as an interactive, web-based publication on October 23, 2024. Content Type(s): Press, Announcements
October 10, 2024 Bank of Canada Media Interview – Red Deer Advocate Bank of Canada Deputy Governor Toni Gravelle gave an interview to the Red Deer Advocate. Content Type(s): Press, Media advisories
October 10, 2024 Bank of Canada Media Interview – rdnewsNOW Bank of Canada Deputy Governor Toni Gravelle gave an interview to rdnewsNOW.com. Content Type(s): Press, Media advisories
An Anatomy of Firms’ Political Speech Staff Working Paper 2024-37 Pablo Ottonello, Wenting Song, Sebastian Sotelo We study the distribution of political speech across U.S. firms. We develop a measure of political engagement based on firms’ communications (earning calls, regulatory filings, and social media) by training a large language model to identify statements that contain political opinions. Using these data, we document five facts about firms’ political engagement. Content Type(s): Staff research, Staff working papers Topic(s): Firm dynamics, Market structure and pricing, Recent economic and financial developments JEL Code(s): D, D2, D22, D6, D63, G, G4, G41, L, L1, L11, L2, L20
October 8, 2024 BATVN publishes an overview of the Canadian repo market Today, the Bankers’ Acceptance Transition Virtual Network (BATVN), established by the Canadian Fixed-Income Forum (CFIF) to support the transition away from BAs, published an overview of the Canadian repo market. Content Type(s): Press, Market notices Source(s): Canadian Fixed-Income Forum, Collateral Infrastructure and Market Practices Advisory Group
Consumer Credit Regulation and Lender Market Power Staff Working Paper 2024-36 Zachary Bethune, Joaquín Saldain, Eric R. Young We investigate the welfare consequences of consumer credit regulation in a dynamic, heterogeneous-agent model with endogenous lender market power. Lenders post credit offers and borrowers—some informed and others uninformed—apply for credit. We calibrate the model to match characteristics of the unsecured consumer credit market and use the calibrated model to evaluate interest rate ceilings. Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates, Financial markets, Interest rates JEL Code(s): D, D1, D15, D4, D43, D6, D60, D8, D83, E, E2, E21, G, G5, G51