As widely expected, the Bank of Canada decided to maintain its target for the overnight rate at 1.75% at its May policy meeting. Below are some key takeaways from the BoC's policy statement.
The trend in USD/CAD has been quite dull since last month Fed meeting. The pair has remained within the range of 1.35 – 1.34 (+0.40% month-to-date) despite acceleration in trade war headlines. Yet the trend is about to change as today’s Bank of Canada monetary policy meeting, although not showing major changes in forward guidance, should benefit the greenback.
According to Christian Lawrence, senior FX strategist at Rabobank, the Bank (BoC) had already shifted to the dovish side but the tone of the accompanying statement was a little more optimistic than the April meeting. "We have been at pains to stress that the slowdown will continue with households being squeezed and investment and trade..."
To the surprise of no informed market participant, the Bank of Canada left interest rates unchanged at 1.75% in today’s monetary policy meeting. A pre-meeting Bloomberg poll of 24 economists showed this result was unanimously expected, so the “decision” itself didn’t lead to any meaningful market moves.
The Canadian dollar fell 0.5 percent after the Bank of Canada (BoC) kept its benchmark interest rate unchanged as expected, but went more dovish with its language. The central bank has all but removed the probability of a rate hike in 2019 with monetary policy to remain accommodative.
Analysts at TD Securities are looking for the Bank of Canada to leave rates unchanged at 1.75%, in line with all private sector forecasts, leaving the focus on updated economic projections and tweaks to the policy statement. For the former, we expect the Bank to formally drop its bias towards higher rates by noting that future moves (not hikes) will be subject to increased uncertainty while updated forecasts should...
BoC held rates steady at 1.75%, matching widespread expectations. The bank watered down its commitment to normalization, saying “Governing Council judges that the outlook continues to warrant a policy interest rate that is below its neutral range.
The Bank of Canada today maintained its target for the overnight rate at 1 ¾ per cent. The Bank Rate is correspondingly 2 per cent and the deposit rate is 1 ½ per cent.
As widely expected, the Bank of Canada maintained its target for the overnight rate at 1.75%. Below are some key takeaways from the BoC's policy statement.
The Bank of Canada today maintained its target for the overnight rate at 1 ¾ per cent. The Bank Rate is correspondingly 2 per cent and the deposit rate is 1 ½ per cent.
The Bank of Canada is the nation's central bank. Its principal role is "to promote the economic and financial welfare of Canada," as defined in the Bank of Canada Act. The Bank’s four main areas of responsibility are:
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Stephen S. Poloz was born in Oshawa, Ontario, in 1956. He was appointed Governor of the Bank of Canada, effective 3 June 2013, for a term of seven years. He is the ninth Governor of the Bank of Canada. As Governor, he is also Chairman of the Board of Directors of the Bank and a member of the Board of Directors of the Bank for International Settlements (BIS). He currently chairs both the BIS Audit Committee and the Consultative Council for the Americas.
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.
