Bank of Canada
Bank of Canada Reaffirms Existing Monetary Policy Settings
March 10, 2021
When the pandemic struck a year ago, the Bank of Canada’s Governing Council compressed the reduction of its overnight policy rate into a trio of 50-basis point cuts all in March to the record low of 0.25%, which it considers an “effective lower bound.” Additional stimulus has been provided by a program of asset purchases. […] More
Bank of Canada Policy Review
January 21, 2021
The Bank of Canada‘s overnight target rate was left at 0.25%. This effective lower boundary has been the rate level since a trio of 50-basis point cuts in March 2020. The rate will not be lifted before economic slack — estimated to be between 2.75% and 3.75% of GDP according to a released policy statement […] More
Slew of U.S. Executive Orders and Central Bank Policy Reviews
January 21, 2021
President Biden’s inaugural address yesterday called for national unity to face down the many severe challenges now juxtaposed. 17 executive orders followed to reverse several polices of the Trump era. Contrary to warnings, inauguration day was free of domestic violence. U.S. stocks experienced their greatest advance on a presidential inauguration day since 1985, when Reagan […] More
Bank of Canada’s Overnight Rate Left 0.25%
December 9, 2020
Since a trio of 50-basis point reductions of the overnight central bank rate target last March to 0.25%, monetary policymakers have used other tools to promote growth, lift inflation, keep Canadian interest rates low across the whole yield curve. Forward guidance commits to continuing asset purchases at a pace of at least C$4 billion per […] More
Bank of Canada Left Overnight Interest Rate Target at 0.25%
October 28, 2020
Three 50-basis point interest rate cuts to an effective floor of 0.25% were implemented by Canadian central bank officials during March, and they continue to affirm that the rate will not be raised until “economic slack is absorbed so that the 2% inflation target is sustainably achieved.” Current projections do not anticipate that happening until […] More
Bank of Canada Retains Effective 0.25% Policy Rate Floor and Pledges Continuing Canadian Government Bond Purchases
September 9, 2020
Canada’s overnight interest rates was cut by 50 basis points on three occasions during March to what central bank officials consider an “effective lower bound” of 0.25%. A statement released after this month’s policy review reaffirms the promise to begin raising the short-term interest rate “until economic slack is absorbed so that the 2 percent […] More
Markets Pausing for Next Big Theme
September 9, 2020
Equities recorded further considerable losses in Pacific Rim trading overnight but have stabilized in Europe. Share prices closed down 1.9% in China, 2.2% in Australia, 1.3% in Indonesia, 1.1% in South Korea and 1.4% in New Zealand. But the Swiss and German markets have rebounded 0.6%, and those in the U.K. and France are up […] More
Bank of Canada Kept at 0..25% Effective Floor and Substantial Quantitative Stimulus to Continue
July 15, 2020
Canada’s overnight central bank rate target was sliced three times by 50 basis points each time during March. At 0.25%, such is now at a level that officials believe to be at an effective lower boundary. In addition, monetary officials have implemented a range of liquidity facilities and asset purchase programs to ease market dysfunctionality […] More
Bank of Canada Augments Unconventional Stimulus and Releases Quarterly Monetary Policy Report
April 15, 2020
During March, the Bank of Canada cut its interest rate target by 50 basis points each on three occasions — the 4th, 13th, and 29th of the month — and declared after the last reduction that the 0.25% overnight rate level constitutes an “effective lower bound.” At today’s scheduled policy review, officials called the Canadian […] More
Third 50-Basis Point Canadian Central Bank Rate Cut Since March 4
March 27, 2020
At a regularly scheduled Governing Council meeting on March 4, the Bank of Canada’s overnight policy rate was cut to 1.25% from 1.75%, a level that had prevailed since a 25-basis point hike in October 2018. A statement released after that meeting observed that Canadian GDP was close to potential and inflation near target but […] More
