Bank of Canada

No Change Made in Bank of Canada’s 0.75% Overnight Interest Rate Target

March 4, 2015

The target had been cut at the prior Governing Council Meeting on January 21, which coincided with a quarterly review of economic conditions and prospects.  The cut in January was the first rate change since a hike in September 2010 was was characterized as providing “insurance against risk of too low inflation and growth from […] More

Bank of Canada Cuts its Main Interest Rate

January 21, 2015

Canada’s overnight money rate target was cut by 25 basis points to 0.75%.  Officials acknowledged some undesirable yet unavoidable surprise to markets in this decision, which is a response to an unambiguously negative impact on Canada of the recent plunge in oil prices.  Today’s rate change was the first since the third of three 25-basis […] More

Spotlight on Central Banks

January 21, 2015

In response to disinflationary implications of the plunge in oil prices, the Bank of Canada cut its overnight money rate target to 0.75% from 1.0%.  Oil price changes also pose downside risks to growth, which is projected to fall to around 1.5% in the first half of this year, and to financial stability.  The prior […] More

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