Bank of Canada

Bank of Canada: Policy Still on Hold

December 3, 2014

Canada’s overnight target interest rate was last changed in September 2010 when such was raised to 1.0% from 0.75%.  The last of eight scheduled policy announcements in 2014 states that Canada’s output gap, a gauge of unutilized productive resources, is smaller than had been estimated in the last quarterly Monetary Policy Report released in October.  […] More

Bank of Canada Keeps Four-Year-Old Policy Settings But Shares New Kernels of Wisdom

October 22, 2014

The monetary policy interest rate target has been at 1.0% since a 25-basis point hike in September 2010.  Following a quarterly review, that level is still considered appropriate, according to a statement released today.  The statement and accompanying Monetary Policy Report convey numerous insights into the latest thinking of Canada’s monetary policymakers. Canada’s output gap […] More

Bank of Canada Keeps 1.0% Overnight Rate Target

September 3, 2014

It’s been four years since the last Canadian central bank rate change, and it could be some time longer.  A statement today from Bank of Canada officials reaffirmed that current policy is “appropriate” and added that “the Bank remains neutral with respect to the next change to the policy rate” both regarding direction and timing.  […] More

Bank of Canada Retains 1.0% Money Rate Target & Releases New Forecasts

July 16, 2014

Canada’s overnight interest rate target has been at 1.0% since a 25-basis point hike in September 2010 and is likely to stay at that level for quite a while longer.  In its released statement after this year’s fifth of eight policy meetings, officials called their accommodative stance “appropriate” and declared continuing neutrality “with respect to […] More

Bank of Canada Maintains Policy Stance

June 4, 2014

Canada’s overnight interest rate target will remain at 1.0%, the level since a 25-basis point hike in September 2010.  A statement from officials observed weaker growth in the first quarter than was anticipated but higher total CPI inflation, too, which was caused by elevated energy costs and a weaker C-dollar.  In the statement, officials attach […] More

Bank of Canada Keeps 1.0% Overnight Interest Rate Target, Calling Policy Stance Appropriate

April 16, 2014

The third scheduled interest rate announcement of 2014 coincided with the release of a new Monetary Policy Report.  Estimates for 2016 have been added to the Bank of Canada’s macroeconomic forecasts.  While core inflation is seen hovering at 1.2% in the first half of this year and not returning to the 2.0% target until the […] More

Bank of Canada Kept 1.0% Overnight Rate Target and Neutral Forward Guidance

March 5, 2014

A statement released after the second of eight scheduled interest rate policy meetings in 2014 said “the current stance of monetary policy is appropriate.”  Upside and downside inflation risks both exist and are roughly balanced.  The statement makes the following assertions. Recent softer U.S. data are attributable to weather distortions and therefore considered temporary. Global […] More

Bank of Canada Identifies Two-Sided Interest Rate Policy Risk

January 22, 2014

For the first time since the last overnight interest rate policy change — a 25-basis point hike to 1.0% in September 2010 — Bank of Canada officials allowed for the possibility that the next change could be a cut.  The subtle warning is contained in the final sentence of today’s rate announcement: “The timing and […] More

Focus on Central Banks

January 22, 2014

Bank of Japan Board members went out of their way to dissuade markets from counting on additional monetary policy stimulus soon.  The January meeting left 9-1/2-month-old policy settings intact, reaffirmed the prior meeting’s economic assessment, and released new price and growth forecasts that are very similar to those adopted in October.  Governor Kuroda said the […] More

Bank of Canada Deems Substantial Monetary Policy Stimulus Still Appropriate

December 4, 2013

Canada’s overnight money target has been 1.0% since a sequence of three 25-basis point hikes in June, July and September of 2010.  Today policy statement notes a stronger-than-assumed housing sector but retains the forecast of a soft landing in that sector.  Meantime, non-commodity exports are disappointing, Canadian oil export prices have eased, the investment recovery […] More