Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
50% - Moderately

Monetary Policy

Synonyms:financial policy, fiscal procedure
Filed Under: financial-banking, investments, legal-contracts, mortgages
Tags: banking, contract, investment, legal, mortgage

Definition of monetary policy

monetary policy
1. The ability of the Bank of Canada to influence the economy through changes in short-term interest rates and the money supply.

Related Terms and Acronyms:

  • bank rate   Closely related to the overnight rate, the bank rate is the interest rate the Bank of Canada charges to banks and other major financial institutions for one-day loans.
  • deflation   An actual decline in the general level of prices in the economy.
  • depression   A prolonged downturn in the economy and level of business activity.
  • economic indicators   Statistics that help determine how the economy is faring. They include the Consumer Price Index, housing starts, and unemployment rates, among others.
  • foreign investment   Investing money into a business in another country.
  • inflation   A rise in the average level of prices in the economy.
  • macroeconomics   A study of the economy as a whole, particularly the interaction of its various components.
  • microeconomics   Looking at the individual parts of the economy, with emphasis given to the market process and how it works.
  • policy   An insurance contract.
  • prime rate   The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.

More Related Terms and Acronyms

Search the Glossary

Compare Mortgage Rates Here
Interested in viewing current mortgage rates? Compare rates from all the best lenders in Canada using our mortgage rate comparison chart and find the lowest one.
Mortgage Rate Comparison
Easy-to-Use Mortgage Calculator
Want to know what your remaining balance is at the end of your mortgage term? Just try our simple to use mortgage calculator and find out.
Pen On Calculator
Mortgage Rates
Mortgage rates are at the lowest they've been in years. Lock in while you still have a chance to take advantage of these historically low rates.
Mortgage Rates