In practice,the Bank of Canada implements its monetary policy by

Question

Quizplus · Accepted Answer

The Bank of Canada implements its monetary policy by directly influencing the overnight interest rate. This is done through open market operations, adjusting the target for the overnight rate, and providing guidance on the future path of interest rates. By influencing the overnight rate, the Bank of Canada can indirectly affect other interest rates in the economy, influencing borrowing and spending decisions of households and firms.

In Practice,the Bank of Canada Implements Its Monetary Policy by