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.