Monetary policy is concerned with how much money circulates in the economy and what that money is worth. By keeping inflation low, stable and predictable, the Bank contributes to solid economic performance and rising living standards for Canadians... more.
Canada's monetary policy is built on a framework consisting of two key components:
- Flexible exchange rate
- Inflation-control target
Low and stable inflation is the best contribution that monetary policy can make to a productive, well-functioning economy.
Changes in the key interest rate influence other interest rates, and so affect people's spending decisions.
Key statistical data pertaining to monetary policy
Quarterly summaries of the Bank's policies and strategies, and of the economic climate and its implications for inflation
A detailed explanation of how the Bank arrives at a monetary policy decision
A graphical description of the monetary policy transmission mechanism
Explains why the Bank's monetary policy matters to Canada's economy
The LVTS is an electronic wire system that lets financial institutions and their customers send large payments securely in real time