Bank of Canada
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The Bank of Canada is Canada’s central bank and is owned by the British Crown, since Canada remains a Commonwealth country. The bank is responsible for implementing monetary policy, providing institutional banking services, and setting the interest rate for borrowed money.
Bank of Canada’s Organizational Structure
Although the Bank is a Crown corporation, it is claimed to be separated and thus insulated from political influence. The Bank of Canada is headed by the Governing Council, Executive Council, and a Board of Directors.
Canadian Economic Policy
The Canadian nominal Gross Domestic Product is one of the highest in the world, largely because of its supply of natural resources, which are estimated to be worth more than $30 trillion. The Bank of Canada was one of the first central banks to adopt inflation rate targeting.
The Bank of Canada’s mission is to regulate credit and currency, ensure the external value of the Canadian dollar, and administer economic policies to consistently increase the country’s inflation. The Bank’s primary goal is to achieve its target inflation rate, and the Bank’s earnings on invested capital are remitted into the Canadian Treasury.