Bank of Canada
Bank of Canada Quarterly Policy Report: Highlights and Inferences
July 22, 2010
After two 25-basis point hikes of the Bank of Canada overnight interest rate target, such stands currently at 0.75%, a level that still represents considerable stimulus. One infers from tables in the new Monetary Policy Report that all remaining stimulus will be removed no later than the end of next year at which the stance [...] More
Bank of Canada Raises Interest Rate But Changes Light to Amber from Green
July 20, 2010
In follow-up to a first 25-basis point rate increase on June 1, Canada’s overnight rate target was lifted by another 25 basis points to 0.75%. The move was widely forecast, and analysts were most interested in any clues about future policy. In several ways, today’s new Bank of Canada statement backpedals, suggesting a third rate [...] More
Bank of Canada Interest Rate Preview
July 19, 2010
The fifth out of eight scheduled interest rate decisions in 2010 will be unveiled at 13:00 GMT Tuesday. Analysts will be combing tomorrow’s statement for clues to whether more tightening is coming in the near term. There’s little doubt that tomorrow will see a second increase to 0.75%, which will put the Bank of Canada [...] More
First Bank of Canada Rate Hike Since July 2007
June 1, 2010
Canadian monetary policy has been tightened as officials had hinted was their strong intention. However, effort has been made to dampen concern that the central bank is now off to the policy normalizing races: Given considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weigned carefully against domestic and [...] More
Review of Bank of Canada Monetary Policy Report
April 22, 2010
The 32-page quarterly policy report from Canada’s central bank reiterates many points made two days ago in the post-meeting policy announcement. But a number of additional revelations were also imbedded in the report. Here are some of the highlights. Real Canadian GDP at an annualized rate from the prior quarter is projected to have expanded [...] More
Canadian Monetary Policy Left Unchanged For Now
March 2, 2010
A new statement from Bank of Canada policymakers is more noteworthy for three dovish points from earlier statements that were deleted. They are Any mention of term Purchase and Resale Agreements. The last scheduled one of these is set for mid-April. Any mention of “flexible” policymaking. Beginning with the April 2009 statement, which announced the [...] More
Bank of Canada Preview
March 1, 2010
In April 2009 when the Bank of Canada halved its overnight target rate to 0.25%, officials made a conditional promise not to raise that rate above 0.25% before the July 2010 meeting. The one stipulation expressed that the inflation outlook remain benign has not been jeopardized, so the central bank’s pledge has been reaffirmed after [...] More
Bank of Canada Monetary Policy Quarterly Report
January 21, 2010
As always, today’s Canadian central bank policy report provides a mountain of handy information. Several useful guideposts are provided, and then one can make inferences that illuminate even more clues about likely future policy. Projected economic growth in 2010 was revised upward from forecasts made in October to 2.5% in the United States from 1.8% [...] More
Bank of Canada Preview
January 18, 2010
When the last Bank of Canada overnight rate target cut was implemented last April, a 25-basis point reduction to 0.25%, officials projected that “conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve [...] More
