Bank of Canada

Bank of Canada Holds Fire and Leaves Policy Interest Rate Unchanged at 1.75%

September 4, 2019

Canada’s overnight target rate has been 1.75% since the last of five 25-basis point hikes spaced between July 2017 and October 2018. With one after another central banks caving in to the global trends of slower growth, subdued wage and price pressure, and falling long-term market interest rates, the Bank of Canada Board stood its […] More

Canadian Monetary Stance Deemed Appropriate… No Changes Made

May 29, 2019

Just five weeks separated the last meeting of the Bank of Canada’s Governing Council on April 24 and this week’s, and officials decided to maintain the overnight rate target at 1.75% as was expected. A released statement observes that the economic landscape has evolved as anticipated in three notable areas: 1) domestic demand is picking […] More

Bank of Canada’s Overnight Interest Rate Target Kept at 1.75%

April 24, 2019

As analysts expected, no change was made today in Canadian central bank interest rates following the third of eight scheduled monetary policy reviews. Officials engineered rate normalization in five 25-basis point steps between July 2017 and October 2018 but made an important change to its forward guidance at its March 6th review. As recently as […] More

Timing of Future Canadian Central Bank Rate Increases Has Become Less Certain

March 6, 2019

The Bank of Canada’s second policy review of 2019 left the overnight interest rate target unchanged at 1.75% but made important changes in the economic outlook and future policy guidance. When the Governing Council last met eight weeks ago, it concluded that “the policy rate will need to rise over time into a neutral range […] More

Bank of Canada: No Rate Change but Tighter Forward Guidance than Predicted

January 9, 2019

Canadian monetary policy remains in a tightening cycle intended to converge on rate neutrality. There have already been five 25-basis point hikes of the overnight rate target beginning in July 2017 and with follow-up moves in September 2017, then January, July and October of 2018. The big decline in the global price of oil resulted […] More

Bank of Canada Tightens Again as Expected

October 24, 2018

In increments of 25 basis points, Canada’s central bank interest rate target has climbed from 0.50% at mid-2017 to 1.75% after today’s actions. Previous rate hikes occurred in July, May and January of this year as well as July 2017. These increases are part of a rate normalization campaign that, according to a released statement, […] More

Bank of Canada’s Governing Council Holds its Fire

September 5, 2018

Four previous 25-basis point increases of the Bank of Canada overnight interest rate had been implemented in September 2017 and January, May and July of this year. More are likely to follow. But consistent with the Governing Council’s “gradual approach,” officials decided to keep the target rate unchanged at 1.50% after the review completed today. […] More

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