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 […]
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 […]
Published in The Globe and Mail. For much of the second half of the 20th century, the United States enjoyed a borrowing-cost advantage over Canada. Today, the advantage is in Canada’s favour. But that reversal should serve as a warning to those who argue Canada has room for fiscal expansion given that it has a […]
June 16, 2026 – The Bank of Canada’s use of multiple measures of underlying inflation is important for properly executing monetary policy, but risks undermining public understanding of monetary policy and complicating efforts to communicate its policy stance clearly, according to a new C.D. Howe Institute report. In “The Bank of Canada’s Communication Conundrum: How to Explain Inflation,” authors Jeremy Kronick, Steve Ambler and Thorsten Koeppl recommend that the […]
From: Jeremy M. Kronick and Steve Ambler To: Interest rate watchers Date: June 16, 2026 Re: The Uncertain Times Confronted by the Bank of Canada 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 2.8 percent in April, up from 2.4 percent in March, near the upper end […]
16 juin 2026 – L’utilisation de plusieurs indicateurs de l’inflation sous-jacente par la Banque du Canada est essentielle pour la bonne conduite de la politique monétaire, mais elle risque de nuire à la compréhension de celle-ci par le public et de compliquer les efforts visant à communiquer clairement son orientation, selon un nouveau rapport de […]
by Jeremy Kronick, Steve Ambler and Thorsten Koeppl This E-Brief is the third in a series related to the Bank of Canada’s 2026 renewal of its inflation-targeting agreement with the federal government. We examine the desirable properties of underlying inflation measures and assess whether the measures available to the Bank meet those criteria. We find […]
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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 […] 
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 […] 
Published in The Globe and Mail. For much of the second half of the 20th century, the United States enjoyed a borrowing-cost advantage over Canada. Today, the advantage is in Canada’s favour. But that reversal should serve as a warning to those who argue Canada has room for fiscal expansion given that it has a […] 
From: Jeremy M. Kronick and Steve Ambler To: Interest rate watchers Date: June 16, 2026 Re: The Uncertain Times Confronted by the Bank of Canada 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 2.8 percent in April, up from 2.4 percent in March, near the upper end […]