Bank of Canada

Bank of Canada Tightens Further

July 11, 2018

Canada’s overnight target central bank rate was lifted to 1.50% today. Bank of Canada officials had prepared markets to expect such a move today. It follows similar 25-basis point increases enacted in September 2017, January 2018 and, most recently, May 2018. A released statement of explanation points to more normalization in the future. Governing Council […] More

Markets React as Trump Stirs Pot of Global Disorder Further

July 11, 2018

Share prices dropped 1.8% in China, 1.4% in Hong Kong, 1.2% in Japan, and 0.7% in Taiwan and Australia. In European markets, equities today are down over 1.0% in Germany, Italy, Spain, France and Switzerland, and the DOW dropped some 160 points in the first quarter hour of U.S. trading. There have also been outsized […] More

Bank of Canada Moves Closer to Enacting a Fourth Rate Hike

May 30, 2018

The Bank of Canada’s overnight rate hike had earlier been raised by 25 basis points each in July and September of 2017 and on January 17, 2018. While leaving the rate at 1.25% at this week’s scheduled policy review, officials in a released statement observed that both inflation and real activity had lately been somewhat […] More

Canadian Monetary Policy Meeting of April 18th Left Stance Unchanged

April 25, 2018

The April Bank of Canada Governing Council meeting coincided with the publication of a quarterly Monetary Policy Report and newly updated macroeconomic forecasts.  The last policy change in January, a 25-basis point overnight target interest rate hike to 1.25%, occurred when the previous MPR was released. Board members this time chose to keep the policy […] More

Canada’s Third 25-Basis Point Central Bank Rate Hike in Six Months

January 17, 2018

The Bank of Canada’s Monetary Policy Council raised the overnight interest rate target to 1.25% from 1.0% today, following similar moves last September and July. A released statement revised upward projected GDP growth in 2018 and 2019 by 0.1 percentage point each to 2.2% and 1.6%. Growth has been led by domestic demand, whereas exports […] More

Canadian Overnight Interest Rate Target Left at 1.0%

December 6, 2017

A statement released after the final scheduled Bank of Canada Governing Council meeting of 2017 observes that growth has evolved since the prior meeting along expected lines but also concedes that inflation has been a bit greater than expected and projects firmer core inflation over time. Slack is getting absorbed, but the growth of potential […] More

Bank of Canada Leaves Policy Rate at 1.0% and Releases Quarterly Monetary Policy Report

October 25, 2017

Canada’s overnight central bank interest rate was retained at 1.0% and will continue to be flanked by a 1.25% Bank Rate and a 0.75% deposit rate. After holding steady at 0.50% for two years, the overnight interest rate had been hiked by 25 basis points after each of the Governing Council’s prior two policy meetings […] More

First Bank of Canada Policy Interest Rate Hike Since September 2010

July 12, 2017

In the initial emergence from the Great Recession, the Bank of Canada raised interest rates three times while the Fed stood pat, lifting the overnight policy rate by 25 basis points each in June, July and September 2010. Like many central banks that jumped the gun, part of that tightening proved premature and had to […] More

Bank of Canada Leaves Overnight Rate at 0.50%

May 24, 2017

There have been only five changes in the Bank of Canada interest rate, all by 25 basis points, since the Great Recession ended for a net change of +25 basis points. The first three moves in June-September of 2010 were increases, and the most recent two were cuts in January and July of 2015. A statement […] More

Bank of Canada Leaves Policy Rate at 0.5%, Projects Modest Growth and Inflation Dipping by Mid-2017

April 12, 2017

Canada’s overnight interest rate target has been 0.50% since cuts of 25 basis points engineered in January and July of 2015. While there’s no urgency to begin tightening as the Federal Reserve is doing, all consideration of a near-term cut has been removed since January due to stronger-than-anticipated growth early this year. Excess slack in the […] More

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