BoC watching 101: Economics & Rates

Research evidence excerpt

BoC watching 101: Economics & Rates

Bank of Canada overview

The Bank of Canada’s mandate

The Bank of Canada is Canada’s (BoC) central bank. Its mandate, as set out in the Bank

of Canada Act, is “to promote the economic and financial welfare of Canada.”

The BoC fulfills this mandate through four core functions. In monetary policy, it seeks to

maintain low, stable, and predictable inflation. In terms of the financial system, it works

to support safe, sound, and efficient financial systems both within Canada and globally.

Its currency function involves designing, issuing, and distributing Canada’s bank notes. In

funds management, the Bank serves as the fiscal agent for the Government of Canada,

overseeing public debt programs and managing foreign exchange reserves.

Exhibit 1: Bank of Canada key facts Exhibit 2: Key links*

The Bank of Canada is a Crown corporation Official websites and other relevant information

Name Bank of Canada Main page

Founded 1934 BoC Governing Council

Governor Tiff Macklem BoC Calendar, Policy Statements and Summary of deliberations

Governing Council 7 members BoC Summary of Deliberations

Autonomous Yes BoC Monetary Policy Reports

Government representative on BoC Business Outlook Survey

Governing Council No BoC Canadian Survey of Consumer Expectations

Terms Governor, Senior Deputy Governor and Deputy Bank of Canada Act

Governors for 7 years; members can be re-elected if Statistics Canada

they are eligible. External Deputy Governors 2 years, Department of Finance

with option to extend 1 or 2 years *Links are to third-party websites, and do not contain BofA research.

Inflation target 2% Source: Bank of Canada, Statistics Canada, Department of Finance

Latest hike/cut 25bp cut (October 2025) BofA GLOBAL RESEARCH

Source: Bank of Canada