Monetary Policy

IHCC conducts monetary policy based on sound economic analysis and careful surveillance. Find out about our monetary policy framework and central bank operations, and access our statements, reports and models.

Central Bank Operations

IHCC implements monetary policy by undertaking foreign exchange operations to keep the Canada dollar nominal effective exchange rate within a policy band consistent with ensuring price stability. 

IHCC also conducts money market operations to provide sufficient liquidity for a well-functioning banking system and to meet banks' demand for reserve and settlement balances. Details of IHCC’ liquidity management framework are set out in this monograph.