December 30, 1997 Bank Releases Guideline for Regulatory Oversight Under Payment Clearing and Settlement Act Clyde Goodlet The Bank of Canada today released a guideline outlining how it intends to carry out its responsibilities under the Payment Clearing and Settlement Act (PCSA). Content Type(s): Press, Press releases
December 14, 1997 Recent economic and financial developments Bank of Canada Review - Winter 1997-1998 The Canadian economy expanded at an average rate of over 4 per cent through the second half of 1996 and the first three quarters of 1997. The expansion was supported by accommodative monetary conditions, substantial employment gains, low inflation, an improved fiscal postion, and strong U.S. demand. These factors will continue to underpin a scenario of sustained growth in output and employment in the period ahead. With the situation in Asia still evolving, it is difficult to be precise about the size of its overall impact on Canada. At the same time, there have been some positive developments including stronger-than-anticipated economic performance in the United States, Mexico, and Europe and declining longer-term interest rates in most industrial countries. The core rate of inflation slipped slightly below the 1 to 3 per cent target range in the closing months of 1997. With the unwinding of some of the special factors that contributed to the decline, trend inflation is expected to move back inside the range in coming months. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Recent economic and financial developments
December 13, 1997 The overnight market in Canada Bank of Canada Review - Winter 1997-1998 Eugene Lundrigan, Sari Toll The overnight market is an active forum where participants with a temporary surplus or shortage of funds can lend or borrow until the next business day. The level of interest rates in the overnight market has always been closely linked to the Bank of Canada's monetary policy operations. In this article, the authors describe the evolution of the market from its roots in the 1950s, the development of the Bank's monetary policy operations in the market, and how the market operates today. They also examine the outlook for the overnight market, particularly the implications of the new Large-Value Transfer System. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Monetary policy implementation
December 12, 1997 Potential output growth: Some long-term projections Bank of Canada Review - Winter 1997-1998 John Kuszczak, Richard Dion This article examines factors that have affected the growth of potential output since the 1950s and presents three possible scenarios for its growth in the future. The authors conclude that there will be a marked slowing in the future growth of potential output as a result of slow population growth and a reduction in labour force participation as the population ages. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Potential output
December 12, 1997 Bank Rate Raised to 4 1/2 Per Cent Media Relations Ottawa, Ontario The Bank of Canada today raised its Bank rate by ½ of one percentage point to 4 ½ per cent. Content Type(s): Press, Press releases
December 11, 1997 Price stability, inflation targets, and monetary policy: Conference summary Bank of Canada Review - Winter 1997-1998 Tiff Macklem This article summarizes the proceedings of a conference hosted by the Bank of Canada in May 1997. The first conference held by the Bank on this subject was in 1993, two years after the introduction of inflation targeting in Canada. The 1997 conference revisited many of the analytic issues related to price stability that had been examined at the first conference, while also considering several additional questions. This time, with the extension of inflation-control targets beyond 1998 under consideration, particular emphasis was placed on the role and design of those targets. The conference also featured a round-table discussion among practitioners of monetary policy in three inflation-targeting countries—New Zealand, Sweden, and the United Kingdom. Their remarks, which focussed on the experience with inflation targets, bring out very clearly the common challenges facing monetary policymakers in open economies. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Monetary policy framework
Constraints on the Conduct of Canadian Monetary Policy in the 1990s: Dealing with Uncertainty in Financial Markets Technical Report No. 80 Kevin Clinton, Mark Zelmer Canada's economic performance in the first half of the 1990s was adversely affected by high premiums in interest rates that were brought on by political and economic uncertainties. Content Type(s): Staff research, Technical reports Topic(s): Monetary policy and uncertainty, Monetary policy implementation, Monetary policy transmission JEL Code(s): E, E5, E58
December 1, 1997 What can monetary policy do to help the economy reach its full potential? Remarks Gordon Thiessen Canadian Club of Toronto Toronto, Ontario Today, we meet against a backdrop of some uncertainty in the international economy. I would like to begin my remarks with an assessment of what the recent financial and economic events in Asia could mean for Canada. Content Type(s): Press, Speeches and appearances, Remarks
November 27, 1997 Final report on wartime gold transactions released Media Relations The Bank of Canada today released a report by Professor Duncan McDowall of Carleton University entitled Due Diligence: A report on the Bank of Canada's handling of foreign gold during World War II. Content Type(s): Press, Press releases
November 25, 1997 Bank Rate Raised in Response to Persistent Weakness in the Canadian Dollar Media Relations Ottawa, Ontario The Bank of Canada today raised the Bank Rate by 1/4 of one percentage point to 4 per cent. The Bank's operating band for the overnight rate was similarly adjusted. Content Type(s): Press, Press releases