Category: Bank of Canada

Bank of Canada Holds Rates Unchanged but Ready to Start Hiking

January 26, 2022
Bank of CanadaBusiness & EconomyCanadaeconomyinflationWorld
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The Bank of Canada held its key policy rate at 0.25 percent on Jan. 26, but is ready to start raising rates.   The central bank judges that “economic slack is now essentially absorbed” and its governing council decided to “end its extraordinary commitment to hold its policy rate at the effective lower bound. “The…

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Costs, Risks of Green Transition Could Stem From Climate Policy Not Climate Risk Itself, Says Economist

January 19, 2022
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As Canada’s financial authorities work to help their sector develop climate policies meant to mitigate impacts on the economy and financial system, the “cure” could be worse than the potential climate-related risks themselves, an economist says.

Bank of Canada Survey Suggests Businesses, Consumers Expect High Inflation for Longer

January 18, 2022
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OTTAWA—Canada’s central bank says businesses and consumers are increasingly convinced that the pace of price increases will continue for the foreseeable future. The Bank of Canada said Monday that its pair of quarterly surveys of businesses and consumers show respondents expect the annual rate of inflation to remain above the Bank of Canada’s two percent…

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Omicron and the Economy: Financial Markets Far Less Worried Than Canadian Provinces

January 12, 2022
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The difference in reactions to Omicron has been stark between Canada’s provincial governments and governments in other countries. The financial markets have also tended to be far more sanguine.

Omicron and the Economy: Provinces’ Significant Concerns Not Reflected in Financial Markets

January 12, 2022
Bank of CanadaBusiness & EconomyCanadaCCP ViruseconomyFedInvestmentOmicronWorld
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The difference in reactions to Omicron has been stark between Canada’s provincial governments and governments in other countries. The financial markets have also tended to be far more sanguine.

Federal Documents Hint at Sweeping Economic Impact From Central Bank ‘Digital Loonie’

January 3, 2022
Bank of CanadaCanadaCentral Bankeconomiceconomic impactfederalfinanceFinance DepartmentWorld
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OTTAWA—Internal government documents show Finance Department officials believe there could be sweeping implications for the economy if the Bank of Canada ever issued its own cryptocurrency. The Bank of Canada has spent years looking at whether to introduce a digital currency, but so far hasn’t seen an immediate need to issue one. In one briefing…

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Feds, Bank of Canada Agree to More Flexibility in Fighting Inflation

December 15, 2021
Bank of CanadaBusiness & EconomyCanadaeconomic policieseconomyFreelandinflationMacklemWorld
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The renewal of the Bank of Canada’s mandate, stating that policy decisions will now also emphasize “maximum sustainable employment” while noting that this is “not directly measurable,” has brought out skeptics.

BoC to Maintain Inflation Mandate, Will Consider Job Market in Rate Decisions

December 13, 2021
bankBank of CanadaBOCCanadainflationjob marketlabour marketrateWorld
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OTTAWA—Canada’s central bank has been told to keep the annual pace of price gains at its historic target, but also to help build up the labour market. Since 1991, the Bank of Canada has targeted an annual inflation rate of between one and three percent, often landing in a sweet spot at two percent. That…

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Bank of Canada Keeps Interest Rates Unchanged, Warns of Omicron Uncertainty

December 8, 2021
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OTTAWA—The Bank of Canada on Wednesday held its key overnight interest rate unchanged, as expected, and said inflation was broadening even as it warned that the Omicron coronavirus variant has created “renewed uncertainty.” The central bank, in a regular rate decision, left its key overnight interest rate at 0.25 percent and maintained guidance that economic…

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Canadian Economy Ripe for Persistent High Inflation

December 4, 2021
Bank of CanadaCanadainflationmonetary policyOpinionU.S. Federal ReserveViewpointsWorld
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Commentary Across the developed world, central bank officials continue to reassure the public that the global spike in inflation over the past nine months is transitory and that inflation should return to pre-pandemic rates sometime in 2022. At the same time, the U.S. Federal Reserve has begun to taper its purchases of government debt (which…

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