Monetary policy

• April 13, 2022

  Understanding our policy interest rate

  At the heart of the Bank of Canada’s monetary policy is the target for the overnight rate. See what it is—and what it means for you.

  Content Type(s): Explainers Topic(s): Monetary policy
• March 25, 2022

  A world of difference: Households, the pandemic and monetary policy

  Remarks (delivered virtually) Sharon Kozicki Federal Reserve Bank of San Francisco Macroeconomics and Monetary Policy Conference San Francisco, California

  Bank of Canada Deputy Governor Sharon Kozicki discusses how differences among households affect economic outcomes, how shocks can have important uneven effects across households, and why these things matter for monetary policy.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Central bank research, Coronavirus disease (COVID-19), Domestic demand and components, Economic models, Housing, Inflation and prices, Labour markets, Monetary policy, Monetary policy framework, Recent economic and financial developments
• March 25, 2022

  Household differences and why they matter

  Speech summary Sharon Kozicki Federal Reserve Bank of San Francisco Macroeconomics and Monetary Policy Conference San Francisco, California

  Deputy Governor Sharon Kozicki talks about why differences in income, wealth and debt across households are important for the economy and what the Bank of Canada will be watching for as interest rates rise.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Central bank research, Coronavirus disease (COVID-19), Domestic demand and components, Economic models, Housing, Inflation and prices, Labour markets, Monetary policy, Monetary policy framework, Recent economic and financial developments

• The Central Bank Strikes Back! Credibility of Monetary Policy under Fiscal Influence

  Staff Working Paper 2022-11 Antoine Camous, Dmitry Matveev

  Central banks in many advanced economies enjoy a high degree of independence, which protects monetary policy decisions from political influence. But how should independent central banks react if pressured by fiscal policy-makers? We examine whether a central bank should design a monetary policy framework that prescribes acting conditionally on how fiscal policy behaves.

  Content Type(s): Staff research, Staff working papers Topic(s): Credibility, Fiscal policy, Monetary policy JEL Code(s): E, E0, E02, E5, E52, E58, E6, E61, E62
• March 3, 2022

  Opening Statement before the House of Commons Standing Committee on Finance

  Opening statement (delivered virtually) Tiff Macklem House of Commons Standing Committee on Finance Ottawa, Ontario

  Content Type(s): Press, Speeches and appearances, Opening statements Topic(s): Coronavirus disease (COVID-19), Inflation and prices, Inflation targets, Interest rates, Monetary policy, Monetary policy implementation, Price stability, Recent economic and financial developments
• March 3, 2022

  Economic progress report: Controlling inflation

  Remarks (delivered virtually) Tiff Macklem CFA Society Toronto Toronto, Ontario

  Bank of Canada Governor Tiff Macklem talks about the Bank’s latest interest rate announcement and what’s driving inflation in Canada. He also discusses how the Bank will manage the next step in the Bank’s balance sheet operations – quantitative tightening.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Coronavirus disease (COVID-19), Domestic demand and components, Expectations, Inflation and prices, Interest rates, International topics, Monetary aggregates, Monetary policy, Monetary policy and uncertainty, Monetary policy communications, Monetary policy implementation, Monetary policy transmission, Price stability, Recent economic and financial developments, Sectoral balance sheet
• March 3, 2022

  Getting inflation back to target

  Speech summary Tiff Macklem CFA Society Toronto Toronto, Ontario

  Governor Tiff Macklem talks about the Bank of Canada’s decision yesterday to raise its policy interest rate. He explains that after two years of extraordinary stimulus, we are now on a path of rising interest rates.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Coronavirus disease (COVID-19), Domestic demand and components, Expectations, Inflation and prices, Interest rates, International topics, Monetary aggregates, Monetary policy, Monetary policy and uncertainty, Monetary policy communications, Monetary policy implementation, Monetary policy transmission, Price stability, Recent economic and financial developments, Sectoral balance sheet
• February 9, 2022

  The role of Canadian business in fostering non-inflationary growth

  Remarks (delivered virtually) Tiff Macklem Canadian Chamber of Commerce Ottawa, Ontario

  Governor Tiff Macklem discusses how business investment and stronger productivity are vital to sustaining non-inflationary economic growth.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Coronavirus disease (COVID-19), Expectations, Firm dynamics, Inflation and prices, Labour markets, Monetary policy, Productivity, Recent economic and financial developments
• February 9, 2022

  Producing growth with less inflation

  Speech summary Tiff Macklem Canadian Chamber of Commerce Canada 360 Summit Ottawa, Ontario

  Governor Tiff Macklem discusses how—by investing in technology and people—businesses can help the economy grow more with less inflation.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Coronavirus disease (COVID-19), Expectations, Firm dynamics, Inflation and prices, Labour markets, Monetary policy, Productivity, Recent economic and financial developments

• Monetary Policy and Redistribution in Open Economies

  Staff Working Paper 2022-6 Xing Guo, Pablo Ottonello, Diego Perez

  We study how different types of monetary policy shape the distributional effects of external economic shocks on households’ consumption in a small open economy. Our results present a trade-off between maintaining overall stabilization and controlling consumption inequality.

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rate regimes, Monetary policy JEL Code(s): E, E3, E32, E5, E52, F, F4, F41, F44