Money markets have raised their bets on a potential Bank of Canada (BOC) micro rate cut' next week, as stricter COVID-19 restrictions weigh on the prospects of an economic rebound later this year, per Reuters. “Reflecting rate cut risk, Canada’s three-month overnight index swap rate has moved below the 0.2% level where the overnight rate has been settling. It has eased 4 basis points since November to trade at about 0.17%.”
Canadian Prime Minister Justin Trudeau announced on Tuesday that they have reached a deal with Pfizer/BioNTech to buy additional 20 million doses of their COVID-19 vaccine, as reported by Reuters.
The October GDP advance of 0.4%, while a slowdown from the September gain of 0.8%, was better than the consensus expectation, point out analysts at CIBC. They see that even with the GDP advance in October and the one expected for November, the economy is still in a deep hole.
In a widely expected decision, the Bank of Canada (BoC) announced on Wednesday that it left its key rate unchanged at 0.25% following its December policy meeting. "Maintaining extraordinary forward guidance, reinforced and supplemented by quantitative easing program, which continues at its current pace of at least C$4 billion per week."
In a widely expected decision, the Bank of Canada (BoC) announced on Wednesday that it left its key rate unchanged at 0.25% following its October policy meeting. In its policy statement, the BoC noted that there is an ongoing and significant slack in the Canadian economy and added that the gap between the actual and potential output is not expected to close until 2023.
In a widely expected decision, the Bank of Canada (BoC) on Wednesday announced that it left its key rate unchanged at 0.25% at its September policy meeting. In its policy statement, the BoC reiterated that the economy will continue to require extraordinary monetary policy support.
In a widely expected decision, the Bank of Canada (BoC) on Wednesday announced that it left its key rate unchanged at 0.25% at its June policy meeting. In its rate statement, the BoC noted that its central scenario doesn't expect the Canadian economy to return to pre-COVID-19 levels until 2022.
Following the Bank of Canada's (BoC) decision to leave its policy rate unchanged at 0.25% as expected, Governor Tiff Macklem and Senior Deputy Governor Carolyn A. Wilkins are delivering their remarks on the monetary policy outlook.
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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Tiff Macklem was born in Montréal, Quebec, in 1961. He was appointed Governor of the Bank of Canada, effective 3 June 2020, for a seven-year term. He is the tenth governor of the Bank of Canada. As Governor, he is also Chairman 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.
