Exploring the drivers of the real term premium in Canada

Zabi Tarshi and Gitanjali Kumar

No 2025-3, Staff Analytical Notes from Bank of Canada

Abstract: Changes in the term premium can reflect uncertainty about inflation, growth and monetary policy. Understanding the key factors that influence the term premium is important when central banks make decisions about monetary policy. In this paper, we derive the real term premium from the nominal term premium in Canada.

Keywords: Financial markets; Interest rates; Econometric and statistical methods; Monetary policy and uncertainty (search for similar items in EconPapers)
JEL-codes: C5 C58 E4 E43 E47 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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Persistent link: https://EconPapers.repec.org/RePEc:bca:bocsan:25-3

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