Bank of Canada

Bank of Canada Ends Bond Purchase Stimulus and Signals Slightly Earlier Interest Rate Lift-Off Timing

October 27, 2021

Canada’s policy interest rate has been at 0.25% since a trio of 50-basis point reductions in March 2020. While significant progress has been achieved toward economic and labor market recovery, that task has not yet been sufficiently completed. Various areas of the labor market are not yet all the way back to pre-pandemic conditions. Canada’s […] More

Dollar Firms Modestly Against Backdrop of Concern over Outlook for Equities

September 8, 2021

It’s normal at any time to encounter predictions of an imminent drop in equities, and the prevalence of Casandrian warnings has increased lately. The Covid pandemic keeps chugging along and preventing a full return of economic activity to the promised land and monetary policies to a semblance of normalcy. In the United States, new cases […] More

Further Scale-Back of Canadian Bond Buying by Bank of Canada

July 14, 2021

The central bank’s Governing Council kept the overnight rate target at 0.25% and indicated in its statement that such is unlikely to be raised until sometime in the second half of 2022. But the weekly pace of government bond purchases was reduced by a billion Canadian dollars to C$ 2 billion. Such had been cut […] More

G7 Meetings, ECB Press Conference, and Released CPI and Industrial Production Share Spotlight

June 10, 2021

Climate change and challenges from China and Russia headline the agenda of this year’s Group of Seven summit in Cornwall, U.K.. This is U.S. President Biden’s first summit. The Governing Council of the European Central Bank, as expected, did not modify its accommodative monetary stance nor forward guidance regarding future policy. Key interest rates (a […] More

Bank of Canada Reduces Pace of Bond Purchases and Adjusts Forward Guidance Slightly

April 21, 2021

As expected, Canada’s overnight interest rate target, which has been 0.25% since a trio of half-percentage point cuts in March 2020, was left unchanged. However, the targeted weekly amount of quantitative stimulus was lowered from “at least 4 billion” to $3 billion, according to a released statement. Governing Council members assert a continuing need for […] More

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