Bank of Canada
Bank of Canada Interest Rate Statement: Less Dovish Tone
April 17, 2012
As expected, the Bank of Canada Board voted to retain a 1.0% overnight money target. That’s been the goal since the third of three straight tightenings in September 2010. The newsworthy component of a statement released by officials is a notice that the end of 19-month-long policy pause may be nearing. For the first time [...] More
Monetary Policy in Canada Left Unchanged as Expected
March 8, 2012
The Bank of Canada left its overnight money rate at 1.0%, the level since September 2010. Although above the Great Recession low of 0.25%, 1.0% is "near historic lows, the financial system is functioning well, and there is considerable monetary stimulus in Canada," according to the latest statement from the Bank of Canada. The statement [...] More
Bank of Canada Preview: No Change anticipated
March 7, 2012
The Bank of Canada overnight money target has been maintained at 1.0% since three consecutive increases of 25 basis points administered in June, July and September of 2010. No change is likely tomorrow either, which the Board reveals its decision after its second of eight scheduled meetings in 2012. The announcement is due at 14:00 [...] More
No Policy Change from Bank of Canada
January 17, 2012
Canada’s 1.0% overnight money rate target since September 2010 was left unchanged again as analysts expected. In the new statement, policymakers reiterated that "there is considerable monetary policy stimulus in Canada." New quarterly macroeconomic forecasts are modestly modified from those presented in October, but the gist of the forecast remains the same. Economic growth will [...] More
But Bank of Canada Target Interest Rate Left Unchanged
December 6, 2011
Canada shares some similarities with Australia. Both are commodity-intensive advanced economies. The Canadian and Australian dollars are each historically high, points made in today’s respective statements from those country’s central banks. Headline inflation exceeds target in both nations but is projected to fall in the future. As noted, the Reserve Bank of Australia unwound the [...] More
Dovish Statement from the Bank of Canada
October 25, 2011
The Bank of Canada left its 1.0% overnight money target unchanged as expected and released a more dovish statement than it had in September and much more dovish remarks than provided in July. In June, July, and September of 2010, three increases of 25 basis points were implemented, but no rate changes have been made [...] More
Canadian Monetary Policy on Hold
September 7, 2011
The Bank of Canada left its overnight money target at 1.0%. That level, as well as a 1.25% Bank Rate and a 0.75% deposit rate, have been maintained for a year, following hikes of 25 basis points implemented in June, July, and September 2010. Today’s statement from officials said that several downside risk possibilities identified [...] More
Canadian Monetary Policy and Outlook Not Changed
July 19, 2011
The central bank interest rate structure, a 1.0% overnight money target flanked by a 1.25% Bank Rate and a 0.75% deposit rate, will be kept at least until the next scheduled policy announcement on September 7, at which point those rates will have be operative for 364 days. Three rate hikes of 25 basis points [...] More
A More Hawkish Bank of Canada Policy Statement but Key 1.0% Rate Retained
May 31, 2011
The Bank of Canada last raised its overnight target interest rate on September 8, 2010. Increases of 25 basis points each had been implemented at three straight meetings In early June, mid-July and early September. Amid slower growth, policy was then paused, but today’s meeting concluded with a stronger signal that more increases are coming. [...] More
Bank of Canada Monetary Policy Report: Highlights and Inferences
April 13, 2011
The main finding of the new central bank quarterly report is the re-estimation of excess supply in the Canadian economy. Officials believe that actual real GDP in the first quarter of 2011 was about 1.0% lower than potential level of GDP if the economy had been operating at full capacity. The new forecast signifies less [...] More
