What is Canada's benchmark reform effort?

In Canada, benchmark reform efforts are being led by the Canadian Alternative Reference Rate Committee (CARR), a group of financial sector firms and public sector institutions. CARR’s mandate includes promoting the use of the Canadian Overnight Repo Rate Average (CORRA) as a key risk-free interest rate benchmark in Canada.

Is interest rate benchmark reform happening globally?

In fact, interest rate benchmark reform is happening globally. Since 2013, the Financial Stability Board’s Official Sector Steering Group has been guiding efforts to establish a more solid foundation for financial products worldwide. The Bank of Canada is a member of this steering group.

How does Bank of Canada's rate affect Canadian businesses and consumers?

The bank's rate impacts Canadian businesses and consumers by influencing the rates they pay and receive on things like mortgages, GICs and savings accounts. The bank slashed its rate to barely above zero in March of 2020 when the pandemic began.

What is the Canadian dollar offered rate (cdor)?

In 2020, CARR was tasked with taking a closer look at the Canadian Dollar Offered Rate (CDOR), which is currently the predominant interest rate benchmark in Canada. The group explored how to bolster the robustness and resiliency of Canada’s benchmark regime.