Bank of Canada: Explainers

Latest explainers

• 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. […]
• What is a tariff?
  A tariff is a tax on imports from another country. It can increase the prices consumers and businesses pay for that good. […]
• What does the Bank of Canada do?
  The Bank has five main areas of responsibility that affect Canadians’ everyday lives. […]
• How is the Bank of Canada run?
  The Bank of Canada is a Crown corporation that is run independently from the government. […]
• Is the Bank of Canada independent from government?
  The Bank of Canada is a Crown corporation that is owned by the federal government, but we are separate from the political process. […]
• Understanding quantitative easing
  QE is a tool that encourages spending and investment—helping us to achieve our inflation target by stabilizing the economy. […]
• What is a central bank?
  A central bank works to promote a country’s economic stability and its citizens’ financial well-being. […]
• Understanding seigniorage
  At the Bank of Canada, we cover the cost of day-to-day business with “seigniorage,” which means earning money from issuing bank notes. […]
• Understanding the output gap
  The output gap is the difference between what an economy actually produces and what it would produce in an ideal world. […]
• Understanding productivity
  High productivity helps raise our standard of living and keep our economy competitive. […]

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