The Bank of Canada often communicates its intentions to tighten or loosen monetary policy by announcing a change in targets for:

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The Bank of Canada typically adjusts its monetary policy stance by changing the target for the overnight lending rate. This is the interest rate at which banks can borrow or lend overnight funds to meet reserve requirements. By changing this rate, the Bank of Canada can influence the amount of money in circulation and ultimately affect inflation and economic growth. The Bank of Canada may also communicate its intentions to tighten or loosen monetary policy through other means, such as speeches or policy statements.

The Bank of Canada Often Communicates Its Intentions to Tighten