BoC Explained

Keith&Jacqueline

Jan 25, 20231 min read

Amortization Period

The amortization period is the length of time it would take to pay off a mortgage in full, based on regular payments at a certain...

Keith&Jacqueline

Sep 8, 20221 min read

What are Mortgage Backed Securities (MBS)?

A Mortgage-Backed Security (MBS) is an investment similar to a bond that is made up of a bundle of mortgage loans bought from the banks...

Keith&Jacqueline

Sep 8, 20221 min read

Is Tapering the same thing as Quantitative Tightening?

No. Tapering is the process of reducing the pace of quantitative easing (QE), but the balance sheet is still being expanded, though at a...

Keith&Jacqueline

Sep 8, 20221 min read

How Does the Overnight Rate Affect the Prime Rate?

When the overnight rate is increased by the central bank, it becomes more expensive for banks to borrow money from one another,...

Keith&Jacqueline

Sep 7, 20221 min read

What are Quantitative Easing and Quantitave Tighterning

What is Quantitative Easing? Quantitative Easing (QE) refers to monetary policies that expand the Federal Reserve System (Fed) balance...

Keith&Jacqueline

Sep 7, 20221 min read

What Is Inflation?

Inflation is the rate at which prices for goods and services rise. This can translate to a decrease in purchasing power over time.

Keith&Jacqueline

Sep 7, 20221 min read

What are CPI and Core CPI?

What is CPI? CPI is the Consumer Price Index. This is a measure of the cost of living for the typical person. What is Core CPI? Core...

Keith&Jacqueline

Sep 7, 20221 min read

What is the Target Overnight Rate?

The target overnight rate is a key Bank of Canada-controlled interest rate used as a basis for one-day (or “overnight”) borrowing between...

Keith&Jacqueline

Sep 7, 20221 min read

What is the main role and function of the Bank of Canada?

Its principal role is "to promote the economic and financial welfare of Canada," as defined in the Bank of Canada Act. Monetary policy:...

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