Canada’s central bank. Promoting your economic and financial welfare. Working to keep inflation low. Terms: https://t.co/31DkFJUS26 En français: @banqueducanada
Jan 12 • 8 tweets • 2 min read
#YouAskedUs about our “Overnight Repo” operations.
What does that mean? Why are we “injecting liquidity” into the financial system?
👇 Keep reading to learn more.
#AskTheBoC
1/8
💡 Remember: our target for the Overnight Rate is what we use to conduct #MonetaryPolicy.
That’s the rate we want banks to charge when they lend each other money for one day in the “overnight market.”
2/8
Oct 31, 2023 • 4 tweets • 1 min read
@FoodProfessor We have not revised our calculations. The figures 0.15 and 0.6 are answers to two different questions.
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@FoodProfessor At Finance Committee yesterday, Gov. Macklem reiterated 0.15 ppts of the current inflation rate is due to April’s carbon tax increase. We explained that in our letter to you:
#YouAskedUs if we printed cash to finance the federal gov’t.
We didn't.
👇 Keep reading to learn how we supported the economy from the shock of the pandemic. #CdnEcon#AskTheBoC
1/6
The pandemic has been a crisis like no other.
As a result, we took various measures, like buying bonds, to support and ensure a strong and stable #economy.
2/6
Aug 15, 2022 • 7 tweets • 3 min read
We keep talking about inflation becoming “entrenched.” What does that mean?
The more people believe inflation will continue to increase and the longer they believe it will last, the more likely it is to remain high.
👇 Keep reading to learn more. #CdnEcon#AskTheBoC
1/7
Prices tend to go up⬆ when the demand for goods and services is more than the #economy can supply.
Prices tend to go down⬇ when the #economy produces more goods and services than people want or need.
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