The business activity in Canada's manufacturing sector continued to expand at a robust pace in March with the IHS Markit Manufacturing PMI rising to 58.5 from 54.8 in February. Commenting on the data, "Canadian manufacturers ended the first quarter of 2021 on an upbeat note with the headline PMI figure improving to the strongest in the ten-year history of the survey," noted Shreeya Patel, Economist at IHS Markit.
BoC maintains its current monetary policy unchanged at 0.25%
BoC's monetary stimulus
Bank of Canada Governor (BoC) Tiff Macklem said on Wednesday that they are observing worrying signs that household indebtedness is worsening as housing prices rise, as reported by Reuters.
Data released on Wednesday showed the real GDP in Canada expanded at a rate of 0.7% in January. Analysts at the National Bank of Canada point out that the highly uneven economic recovery extended into January.
BOC event related news
BOC event related analysis
March BoC meeting review
In a widely expected decision, the Bank of Canada (BoC) announced on Wednesday that it left its key rate unchanged at 0.25% following the March policy meeting. Key takeaways from policy statement as summarized by Reuters: "Will hold the current level of policy rate until inflation objective is sustainably achieved, will continue quantitative easing."
January BoC meeting review
The Bank of Canada has left its interest rate unchanged at 0.25% as anticipated. In its accompanying statement, the Ottawa-based institution said that inflation is set to return to 2% in a sustainable manner by 2023.
December BoC meeting review
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."
October BoC meeting review
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.
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?
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.
Interest rates latest news
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.