Bank of Canada

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

Bank of Canada Maintains Overnight Rate Target at 0.50%

March 1, 2017

As at the European Central Bank, official at the Bank of Canada are “looking thought the effects” of higher energy prices on inflation, which they expect to be temporary. A statement released after this year’s second of eight scheduled policy reviews, notes that multiple measures of core inflation point “to material excess” in Canada’s economy and […] More

Bank of Canada’s Interest Rate Target Kept at 0.50%

January 18, 2017

The Governing Council retained a 0.5% target interest rate. That’s been the level since reductions of 25 basis points in January 2015 and July 2015. Officials just completed a review quarterly that hardly changed macroeconomic projections last made in October and that concluded that the existing monetary stance is still appropriate. A statement explaining today’s […] More

Bank of Canada

December 7, 2016

This month’s Bank of Canada policy meeting, the last scheduled for 2016, was not synchronized with one of the four full monetary policy reports produced each year. As expected, the overnight money target was left at 0.50%. Since the end of the Great Recession, the rate has been changed just five times: three 25-bp increases […] More

Bank of Canada Retains 0.5% Interest Rate Target and Lowers Projected Growth and CPI Path

October 19, 2016

The statement released by monetary officials projects GDP growth of 1.1% in 2016, down from a prior projection of 1.3%. Growth in 2017 and 2018 have been reduced to 2.0% from 2.2% and 2.1%, respectively.  The change reflects slower near-term housing resale activity and a lower export trajectory. Growth is now surpassing potential, but spare […] More

No Change in Bank of Canada Interest Rate

September 7, 2016

Canada’s economy last quarter suffered a setback that monetary officials didn’t anticipate. In fact, real GDP contracted 1.6% at a seasonally adjusted annualized rate compared to 1Q. Exports were weaker than anticipated and remain a concern. But officials expect a bounceback in the second half of 2016. A released statement assumes a recovery in oil […] More

Bank of Canada Leaves Policy Unchanged

July 13, 2016

Canada’s overnight money rate target has been 0.50% since two 25-basis points cut last year implemented in January and July.  Monetary officials retained the 0.50% rate but lowered projected GDP growth this year to 1.3% and pushed back slightly the expected timing when the negative output gap, which depresses inflation, will disappear to the end […] More