Bank of Canada

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

Bank of Canada

May 25, 2016

The Canadian central bank overnight interest rate target was left unchanged as expected.  It’s been 0.50% since the second of two 25-basis point cuts last July.  The first one was done in January, and those were the only changes since a trio of consecutive tightenings in June, July and September of 2010.  A statement explaining […] More

Bank of Canada Retains 0.5% Overnight Money Rate Target and Releases New Forecasts

April 13, 2016

A statement justifying the existing central bank interest rate structure makes seven primary assertions. First, the global economic outlook has weakened since January. Second, commodity prices are slightly above levels assumed at the start of this year, although well below historical averages. Third, the Canadian dollar has firmed. Fourth, potential non-inflationary output growth had to […] More

Bank of Canada’s Overnight Money Rate Target Left at 0.50% at Second Planned Meeting of 2016

March 9, 2016

For four and a third years from September 2010 until January 2015, Canada’s central bank interest rate had stayed at 1.0%.  The plunge in oil and other commodity prices for this commodity-intensive economy had caused a mini-recession last year to which monetary officials responded with interest rate cuts of 25 basis points each in January […] More

Bank of Canada Retains 0.50% Overnight Interest Rate Target

January 20, 2016

Central banks are in the first stage of grief over what’s transpiring in financial markets this year, and the Bank of Canada is no exception.  The take-away from today’s released statement is that policymakers are in a state of denial.  Yes, forecast adjustments have been made in the face of year-to-date declines in the Toronto […] More

Bank of Canada Retains Existing Very Accommodative Policy Stance

December 2, 2015

In the first half of 2015, Canada experienced back-to-back quarterly economic contractions, constituting a recession, but such was short-lived, as real GDP rose 2.3% at an annualized rate last quarter in spite of a 1.1 percentage point inventory drag.  Twice earlier this year in January and July, the Bank of Canada Board voted to cut […] More

Bank of Canada Maintains 0.50% Overnight Money Rate Target

September 9, 2015

The Board deliberates interest rate policy eight times per year and had cut the interest rate target at two of the five earlier meetings in 2015.  Canada experienced a real GDP contraction in each quarter of the year’s first half.  When the key rate was sliced July 15 to 0.50% from 0.75%, the action was […] More

Bank of Canada Monetary Policy Stance Eased for Second Time This Year

July 15, 2015

A famous Monty Python skit produced the line, “Nobody expects the Spanish inquisition,” and the idea applies equally well to the forecasts of public authorities particularly central banks when it comes to forewarnings about coming recessions.  In cutting the overnight money target by 25 basis points to 0.50% today, Bank of Canada officials published an […] More

Bank of Canada Left Overnight Interest Rate Target at 0.75%

May 27, 2015

The fourth of eight scheduled monetary policy meetings decided the present policy stance is still appropriate but observed that higher oil prices and a softer U.S. dollar in recent weeks, noting that “if these developments are sustained, their net effect will need to be assessed as more data become available in the months ahead.”  The […] More