The Bank of Canada concluded that a more accommodative monetary policy was not needed at this time to address downside risks to the Canadian economy. The Bank of Canada noted the resilience of the Canadian economy in the midst of adverse global developments. They noted in their rate statement the following: "In considering the appropriate path for monetary policy, the Bank will be monitoring the extent to which the global slowdown spreads beyond manufacturing..."
BoC Interest Rate Decision
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October BoC meeting review
In a widely expected decision, the Bank of Canada on Wednesday announced that it left the policy rate steady at 1.75% at its October policy meeting. At 15:15 GMT, BoC Governor Poloz will be delivering his remarks on the policy outlook in a press conference. With the initial market reaction, the USD/CAD pair rose above the 1.31 handle and was last seen trading at 1.3107, adding 0.17% on the day. Below are some key takeaways from the policy statement, via Reuters.
September BoC meeting review
At today’s Board meeting, the Bank of Canada (BoC) kept the key interest rate unchanged at 1.75% today. According to Krishen Rangasamy and Paul-André Pinsonnault, analysts at National Bank of Canada, point out that the statement was dovish as the central bank highlighted risks and downplayed the positive growth surprise of the second quarter.
While some analysts thought that the Bank of Canada could cut interest rates at today's meeting, punting the decision to October was always the more likely outcome. As my colleague Joe Perry noted in yesterday's BOC Preview report, "The next full update of the Bank's economy and outlook will not be until the October 30th meeting, so the bank may be likely to carry on with its "appropriate" language and continue to "monitor the data" until then."
After today’s meeting, the Bank of Canada (BoC) kept its interest rate unchanged at 1.75% as most expected. Josh Nye, Senior Economist at RBC Economics Research point out the central bank statement offered no direction regarding future policy moves and he warned that gobal developments hold the key to future decisions. “Since its July meeting, conversation has shifted from ‘if’ to ‘when’ the BoC will join its many global peers in lowering interest rates. But that evolution wasn’t obvious in today’s policy statement, which was more...”
July BoC meeting review
In a widely expected decision, the Bank of Canada announced that it left the policy rate steady at 1.75% at its July policy meeting. With the initial market reaction, the USD/CAD pair erased the losses it suffered after the FOMC published Chairman Powell's prepared remarks. As of writing, the pair was up 0.15% on the day at 1.3145. Below are some key takeaways from the BoC's policy statement, as reported by Reuters.
What is the BOC?
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:
- Monetary policy: The Bank influences the supply of money circulating in the economy, using its monetary policy framework to keep inflation low and stable.
- Financial system: The Bank promotes safe, sound and efficient financial systems, within Canada and internationally, and conducts transactions in financial markets in support of these objectives.
- Currency: The Bank designs, issues and distributes Canada’s bank notes.
- Funds management: The Bank is the "fiscal agent" for the Government of Canada, managing its public debt programs and foreign exchange reserves.
Who is BOC's president?
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.
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the world interest rates table
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.