by Jeremy M. Kronick and Wendy Wu Using a comprehensive series of Canadian monetary policy shocks that captures movements across the entire yield curve, this Commentary examines how monetary policy affects aggregate business investment, GDP investment categories, and investment in 10 Canadian industries. Unlike previous studies, the analysis incorporates conventional and unconventional policy actions, scheduled and unscheduled […]
30 juillet 2026 – À mesure que l’économie canadienne évolue, les effets de la politique monétaire sur les investissements des entreprises évoluent eux aussi. Selon un nouveau rapport de l’Institut C.D. Howe, il est essentiel de suivre ces changements de près pour assurer une politique monétaire plus efficace. Dans « Seeing the Whole Picture: How […]
July 30, 2026 – As Canada’s economy evolves, so too does the way monetary policy affects business investment. Keeping pace with these changes will allow for more effective monetary policy, according to a new report from the C.D. Howe Institute. In “Seeing the Whole Picture: How Monetary Policy Shapes Business Investment in Canada,” authors Jeremy […]
From: Jeremy M. Kronick and Steve Ambler To: Interest rate watchers Date: July 22, 2026 Re: The Bank of Canada is Right to Tread Water on Interest Rates The Bank of Canada held its policy rate constant at 2.25 percent last week, meeting market expectations. This was despite headline inflation increasing to 3.2 percent in May, up from 2.8 percent in […]
From: Steve Ambler and Jeremy M. Kronick To: Monetary Policy Observers Date: July 16, 2026 Re: An Unwise First Step From the New Chair of the Fed Communication is key to central banking. There is a fine line between creating confusion by saying too much, and creating unnecessary uncertainty by saying too little. The Fed is headed in the latter direction and the Bank of Canada should not follow suit. In […]
Published in the The Globe and Mail. The Bank of Canada held its policy rate constant at 2.25 per cent on Wednesday, meeting market expectations. This was despite headline inflation increasing to 3.2 per cent in May, up from 2.8 per cent in April. This is outside the Bank of Canada’s 1-to-3 per cent control range. The […]
Published in the Financial Post. Communication is key to central banking. And key to that communication is the fine line between creating confusion by saying too much and creating unnecessary uncertainty by saying too little. Under its new Chairman, Kevin Warsh, the United States Federal Reserve is headed in the direction of minimalism. We think the Bank of Canada should […]
July 9, 2026 – The C.D. Howe Institute’s Monetary Policy Council (MPC) calls for the Bank of Canada to keep its target for the overnight rate, its benchmark policy interest rate, at 2.25 percent at its next announcement on July 15, maintain it at that level until January 2027, and raise it to 2.5 percent by July 2027. The MPC is chaired by Jeremy Kronick, the Institute’s President […]
The C.D. Howe Institute’s toolkit for tracking the economy is a customized series of data sets from past Institute publications. These tools can be helpful for policymakers and other parties interested in analyzing monetary policy and financial stability decisions. These unique variables, which can all be found in past Institute work, include: The Leading […]
To: Central bank watchers From: Jeremy M. Kronick, Thorsten Koeppl and Steve Ambler Date: July 6, 2026 Re: How to Refine the Bank of Canada’s Communication Strategy The Bank of Canada should continue to seek improved measures of underlying or core inflation for its own internal use. However, it should reduce its reliance on these measures in communicating with the public, […]
Published in The Hill Times. The Bank of Canada should continue to seek improved measures of underlying or core inflation for its own internal use. However, it should reduce its reliance on these measures in communicating with the public, and, as we argue in a recent C.D. Howe Institute paper, focus instead on providing a fuller […]
From: Don Drummond and Nicholas DahirTo: Fiscal and monetary policy decision-makersDate: June 29, 2026 Re: Keeping Our Edge: The Benefits of Sound Monetary and Fiscal Policy For much of the second half of the twentieth century, the United States enjoyed a borrowing-cost advantage over Canada. Today, the advantage is in Canada’s favour. That reversal should serve […]
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by Jeremy M. Kronick and Wendy Wu Using a comprehensive series of Canadian monetary policy shocks that captures movements across the entire yield curve, this Commentary examines how monetary policy affects aggregate business investment, GDP investment categories, and investment in 10 Canadian industries. Unlike previous studies, the analysis incorporates conventional and unconventional policy actions, scheduled and unscheduled […] 
From: Jeremy M. Kronick and Steve Ambler To: Interest rate watchers Date: July 22, 2026 Re: The Bank of Canada is Right to Tread Water on Interest Rates The Bank of Canada held its policy rate constant at 2.25 percent last week, meeting market expectations. This was despite headline inflation increasing to 3.2 percent in May, up from 2.8 percent in […] 
From: Steve Ambler and Jeremy M. Kronick To: Monetary Policy Observers Date: July 16, 2026 Re: An Unwise First Step From the New Chair of the Fed Communication is key to central banking. There is a fine line between creating confusion by saying too much, and creating unnecessary uncertainty by saying too little. The Fed is headed in the latter direction and the Bank of Canada should not follow suit. In […] 
Published in the The Globe and Mail. The Bank of Canada held its policy rate constant at 2.25 per cent on Wednesday, meeting market expectations. This was despite headline inflation increasing to 3.2 per cent in May, up from 2.8 per cent in April. This is outside the Bank of Canada’s 1-to-3 per cent control range. The […] 
Published in the Financial Post. Communication is key to central banking. And key to that communication is the fine line between creating confusion by saying too much and creating unnecessary uncertainty by saying too little. Under its new Chairman, Kevin Warsh, the United States Federal Reserve is headed in the direction of minimalism. We think the Bank of Canada should […] 
The C.D. Howe Institute’s toolkit for tracking the economy is a customized series of data sets from past Institute publications. These tools can be helpful for policymakers and other parties interested in analyzing monetary policy and financial stability decisions. These unique variables, which can all be found in past Institute work, include: The Leading […] 
To: Central bank watchers From: Jeremy M. Kronick, Thorsten Koeppl and Steve Ambler Date: July 6, 2026 Re: How to Refine the Bank of Canada’s Communication Strategy The Bank of Canada should continue to seek improved measures of underlying or core inflation for its own internal use. However, it should reduce its reliance on these measures in communicating with the public, […] 
Published in The Hill Times. The Bank of Canada should continue to seek improved measures of underlying or core inflation for its own internal use. However, it should reduce its reliance on these measures in communicating with the public, and, as we argue in a recent C.D. Howe Institute paper, focus instead on providing a fuller […]