Bank of Canada (BoC)


Bank of Canada Decision

Loonie moves

USD/CAD Forecast: The BOC-related jump may have been premature – a selling opportunity?

The BOC left the interest rate unchanged at 1.25% as most economists had expected. Markets priced in a 20% chance of a hike. The USD/CAD jumped to a high of 1.2635 as the statement pledged caution regarding raising the interest rates. This was not new but perhaps some had expected a more hawkish tone. In addition, the Canadian Dollar advanced nicely in recent weeks thanks to NAFTA progress and 3-year highs for oil. Perhaps this was an opportunity to take profits.

BOC event related news

BOC event related analysis


April BoC meeting preview

BoC to leave rates on hold at 1.25% - Rabobank

This meeting will be accompanied by a new Monetary Policy Report containing the Bank of Canada’s new growth and inflation forecasts. NAFTA remains a key risk but the market seems to be trading as if an agreement is likely to be forthcoming in the coming weeks and this remains our base case.


March BoC meeting review

BOC more worried about trade but still intend to raise rates - CAD slightly pressured

The Bank of Canada left the interest rate unchanged at 1.25% as widely expected. They do see a path of higher interest rates in the future, leaving the hawkish bias in the last paragraph. Rates are still expected to rise. However, the team led by Poloz elevated their tone about international trade. Without directly mentioning Trump, they said that trade developments are a significant and growing source of uncertainty. This is new language that initially sent the USD/CAD higher but limited the gains.

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Big Picture

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.

The official website, on Twitter and YouTube

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.

Stephen Poloz

Poloz

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.


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