Bank of Canada

The Bank of Canada (BOC) is the central bank of Canada. It was created in 1934 and is responsible for implementing monetary policy in the country, issuing currency, and promoting a safe and stable financial system.

The Bank's main role is to "promote the economic and financial welfare of Canada," as defined in the Bank of Canada Act. This includes maintaining the stability of the financial system, promoting a sound and efficient financial system, and fostering monetary conditions that will preserve the value of money. The Bank also acts as a fiscal agent for the Canadian government and holds a portion of the government's foreign exchange reserves.

The bank's governance structure is made up of a Board of Directors, with a Governor as its chief executive, who is appointed by the Canadian government. The Governor is responsible for the management and direction of the Bank, while the board of Directors provides oversight on the Bank's activities, and also approve the bank's budget.

The bank has a key role in Canada's economy, as it uses a variety of tools to influence the country's monetary policy, interest rates and inflation. The bank's most important tool is setting the target for the overnight rate, which is the interest rate at which financial institutions lend and borrow money in the overnight market. The bank uses this tool to influence the overall level of interest rates in the economy, which in turn affects spending and economic growth.

In setting monetary policy, the BOC uses a consensus-based approach rather than voting.