In its annual Financial Stability Report, the Bank of Canada (BoC) said the trade war with the United States threatens the Canadian economy and poses risks to financial stability, per Reuters.
The Canadian Dollar (CAD) is outperforming most major currencies, BBH FX analysts report.
Before the Easter break, the BoC held the policy rate at 2.75% as expected by markets and the majority of analysts, Danske Bank's FX analysts report.
On Wednesday, the Bank of Canada (BoC) maintained its policy rate at 2.75%, a move that matched widespread market expectations.
In a widely expected move, the Bank of Canada (BoC) announced on Wednesday that it was cutting its policy rate by 25 basis points to 2.75%, aligning with market forecasts.
The Bank of Canada (BoC) delivers a widely expected 25 basis points rate cut, bringing interest rates down to 3.00% on Wednesday. This reduction in rates comes at a slower pace after back-to-back 50 basis points cuts.
The Bank of Canada (BoC) is the nation's central bank. Its principal role, as defined in the Bank of Canada Act, is "to promote the economic and financial welfare of Canada." The bank’s responsibilities are divided into four main areas:
The Bank of Canada (BoC) sets interest rates and manages monetary policy at eight scheduled meetings a year and ad hoc emergency meetings that are held as required. The BoC’s primary mandate is to maintain price stability, which means keeping inflation at between 1-3%. Its main tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Canadian Dollar (CAD) and vice versa. Other tools used include quantitative easing and tightening.
The official website, on X and YouTube
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.
Macklem on his BOC's profile and Wikipedia
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.