Monetary policy, interest rates and the Canadian dollar

Jean-Sebastien Fontaine, Ingomar Krohn, James Kyeong, Rishi Vala and Konrad Zmitrowicz

No 2025-2, Staff Analytical Notes from Bank of Canada

Abstract: Changes in domestic interest rates affect the value of the Canadian dollar less than changes in the risk premium do. These variations often occur when a broad shift in risk sentiment occurs in global markets. Ultimately, the value of the currency reflects long-term, slow-moving features of the economies.

Keywords: Asset pricing; Econometric and statistical methods; Exchange rates; Interest rates; Monetary policy (search for similar items in EconPapers)
JEL-codes: E4 E43 F3 F31 G1 G12 (search for similar items in EconPapers)
Date: 2025-02
New Economics Papers: this item is included in nep-cba and nep-mon
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