People may have questions like: What is the duty of Bank of Canada; what is monetary policy; what is the difference between commercial banks and Bank of Canada; why Bank of Canada increases interest rate consecutively in this year; what is the purpose by raising benchmark rate; After going through my Padlet Wall, you will have a better understanding about Bank of Canada and Monetary Policy. 

This video is about the history of Bank of Canada, how to continue to promote Canada’s finance and economy, and its role to be the agent of Canadian commercial banks.

Bank of Canada is the start of our topic. It is important to understand the responsibilities of Bank of Canada in Canada’s economy, and also the difference between central bank and commercial bank. 

The reason I choose this video is to help my readers to know more about monetary policy. Monetary policy is not one policy, it is a combination of different tools, its purpose is to control money supply and demand in circulation and thus to realize the pre-set objective of inflation rate and unemployment rate. 

The reason I choose this video because I want my reader to know that Bank of Canada releases Monetary Policy Report quarterly. People can also go to the website of Bank of Canada to check the full version of monetary Policy report. This report is mainly telling you about our current inflation level and the response to current monetary policy. The Monetary Policy Report also has the prediction of inflation so that Canadian can have a whole picture of our economy.

 

The reason I choose the website is because this is the most reliable, accurate and timely resource of Canada’s monetary policy. There are many websites, articles, discussion post, news about our monetary policy, how it work and what the consequence it may be. However, these resources may not be 100% accurate as people’s perspectives may have been built in their interpretation of policy, and the interpretation is limit to different individuals. Our decisions have to make on the most accurate information, so that’s the importance of this website.  

 The reason I choose this web site because it will bring you into an insight of 3 tools and help you understand the how every tool is working towards the target, how they affect the money supply and demand in the market, and eventually affect the inflation target. Even though these 3 tools are working toward the same targets but some are more efficient and some are less. Interest rate is considered the most efficient tool among these 3. So we are seeing the news of increasing bench mark rate increase during year 2022 as a major way to control inflation rate. 

 The reason I choose this website is because, Moody is one of the most largest investment bank around the world, Moody’s website gives you very most professional deep analysis of current Canada’s economy and also gives you all the key indicator to help you understand the performance of the economy. More importantly, these key indicators and analysis can help you to predict the future economy performance so support your personal or business decisions. Learning economy helps us better understand the current situation but more helps us to review our current portfolio and make adjustment accordingly. 

Unfortunately, the inflation rate still on a peak, interest rate is expected to continue to rise until end of 2023. For those who have loan on a variable rate should be more aware of the importance of Monetary Policy Report and be ready for more interest rate increase.