Monetary policy implementation

• November 17, 2016

  Market Operations and Liquidity Provision at the Bank of Canada

  Bank of Canada Review - Autumn 2016 Mark de Guzman

  The Bank of Canada’s framework for market operations and liquidity provision describes how and when central bank liquidity might be offered with regards to the implementation of monetary policy and for supporting the stability of the Canadian financial system. Market participants can therefore plan their transactions knowing that the Bank stands ready to help manage system liquidity to support its objectives for monetary policy and financial stability.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Financial markets, Financial stability, Monetary policy framework, Monetary policy implementation, Monetary policy transmission, Payment clearing and settlement systems JEL Code(s): E, E4, E42, E5, E52, E58, G, G0, G01
• September 26, 2016

  Cross-Border Trade Integration and Monetary Policy

  Lecture Stephen S. Poloz Western Washington University Bellingham, Washington

  Governor Stephen S. Poloz discusses global trade integration and the implications for the conduct of monetary policy.

  Content Type(s): Press, Speeches and appearances, Lectures Topic(s): Central bank research, Economic models, Monetary policy, Monetary policy implementation, Monetary policy transmission, Trade integration
• September 14, 2016

  (S)low for Long and Financial Stability

  Remarks Carolyn A. Wilkins Official Monetary and Financial Institutions Forum City Lecture London, United Kingdom

  Senior Deputy Governor Carolyn Wilkins discusses the financial stability risks associated with slow growth and low interest rates, and explores strategies to mitigate them.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Financial markets, Financial stability, Interest rates, International topics, Monetary policy implementation, Potential output

• Relationships in the Interbank Market

  Staff Working Paper 2016-33 Jonathan Chiu, Cyril Monnet

  In the interbank market, banks will sometimes trade below the central bank's deposit rate. We explain this anomaly using a theory based on market frictions and relationship lending.

  Content Type(s): Staff research, Staff working papers Topic(s): Interest rates, Monetary policy implementation, Monetary policy transmission JEL Code(s): E, E4, E5
• May 16, 2016

  Estimating Canada’s Effective Lower Bound

  Bank of Canada Review - Spring 2016 Jonathan Witmer, Jing Yang

  Recently, the Bank of Canada has estimated the effective lower bound (ELB) on its policy interest rate to be about -50 basis points. This article outlines the analysis that underpins that estimate by quantifying the costs of storing and using cash in Canada. It also explores how some international markets have adapted to negative interest rates, issues surrounding their implementation, as well as their transmission to other interest rates in the economy. Finally, it discusses theoretical ideas on how the ELB could be reduced further.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Monetary policy framework, Monetary policy implementation, Monetary policy transmission JEL Code(s): D, D5, D53, E, E4, E43, E5, E52, E58
• April 13, 2016

  Monetary Policy Report Press Conference Opening Statement

  Opening statement Stephen S. Poloz, Carolyn A. Wilkins Ottawa, Ontario

  Governor Stephen S. Poloz discusses key issues involved in the Governing Council’s deliberations about the policy rate decision and the MPR.

  Content Type(s): Press, Speeches and appearances, Opening statements Topic(s): Inflation and prices, Interest rates, Labour markets, Monetary policy, Monetary policy implementation, Recent economic and financial developments
• January 20, 2016

  Monetary Policy Report Press Conference Opening Statement

  Opening statement Stephen S. Poloz Ottawa, Ontario

  Governor Stephen S. Poloz discusses key issues involved in the Governing Council’s deliberations about the policy rate decision and the MPR.

  Content Type(s): Press, Speeches and appearances, Opening statements Topic(s): Inflation and prices, Interest rates, Monetary policy, Monetary policy implementation, Recent economic and financial developments, Regional economic developments
• December 8, 2015

  Prudent Preparation: The Evolution of Unconventional Monetary Policies

  Remarks Stephen S. Poloz The Empire Club of Canada Toronto, Ontario

  Governor Poloz speaks about the Bank’s updated framework for unconventional monetary policies.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Asset pricing, Central bank research, Interest rates, Monetary policy framework, Monetary policy implementation, Recent economic and financial developments

• Estimating Canada’s Effective Lower Bound

  Staff Analytical Note 2015-2 Jonathan Witmer, Jing Yang

  In 2009, the Bank of Canada set its effective lower bound (ELB) at 25 basis points (bps). Given the recent experience of Sweden, Denmark, Switzerland and the euro area with negative interest rates, we examine the economics of negative interest rates and suggest that cash storage costs are the source of a negative lower bound on interest rates.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Central bank research, Monetary policy framework, Monetary policy implementation JEL Code(s): D, D5, D53, E, E4, E41, E43, E5, E58
• November 19, 2015

  The Effect of Regulatory Changes on Monetary Policy Implementation Frameworks

  Bank of Canada Review - Autumn 2015 Meyer Aaron, Annick Demers, Sean Durr

  This article provides an analysis of some recent banking regulatory initiatives that are likely to influence the activities of financial intermediaries and the effectiveness of central bank monetary policy implementation frameworks. Although the effects of individual regulations can be anticipated in most cases, the combined regulatory impact is not yet clear. Central banks should, however, be able to accommodate the effects of the emerging regulatory environment within their existing policy implementation frameworks.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Financial institutions, Financial markets, Financial system regulation and policies, Monetary policy implementation JEL Code(s): E, E5, E52, G, G2, G21, L, L5, L50