Reference

Monetary Policy

Monetary Policy

Plain meaning

Central-bank decisions and communications aimed at influencing inflation, interest rates, and financial conditions.

Also called

central bank policy monetary-policy

Key points

  • In Canada, monetary policy is conducted by the Bank of Canada.
  • The policy interest rate affects borrowing costs, savings rates, mortgages, business financing, and exchange-rate conditions.
  • Monetary policy is separate from fiscal policy, which is set through government taxation and spending.
  • Bank of Canada summaries often explain the economic data and risks behind rate decisions.

Why it comes up

Interest-rate and inflation articles affect household costs, mortgage pressure, business financing, and public-finance conditions.

News signals

Bank of Canada rate decision inflation target policy rate monetary policy report

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