In an effort to target inflation that is at its highest level in decades, the Bank of Canada on Wednesday increased its policy interest rate by 50 basis points, to 1%, and said it would begin to reduce its balance sheet, known as quantitative tightening. The move was widely expected following the ... READ MORE >
Bank of Canada
Bank of Canada raises rates in response to inflation
The Bank of Canada announced on Wednesday that it would raise its overnight rate to 0.5%, 25 basis points from the lower bound policy rate of 0.25%, to tackle inflation. This marks the first rate hike in more than three years. The bank, however, said it would keep its holdings of bonds on its balance ... READ MORE >
Bank of Canada keeps rates steady but prepares for rate hikes ahead
The Bank of Canada kept its policy rate at 0.25% at its January meeting on Wednesday as it prepares to hike rates in March and subsequently draw down its balance sheet. In its announcement, the central bank has removed its exceptional forward guidance on its policy rate, saying that “the economic ... READ MORE >
Bank of Canada decision: Central bankers set the stage for 2022 rate hikes
The Bank of Canada kept its policy rate at 0.25% at its December meeting on Wednesday as it prepares the public and market participants for the normalization of monetary policy and the first increase in interest rates next year. The central bank’s policy rate decision and forecast, on the back of a ... READ MORE >
RSM Canada Financial Conditions Index: An inflation tantrum?
Financial markets around the world are reacting to the rising risk of inflation and the prospect of policy responses by central banks, all of which have led to a modest easing in our RSM Canada Financial Conditions Index. The Bank of Canada has already halted its bond purchase plan, the Reserve ... READ MORE >
Bank of Canada talks like a hawk and walks like a dove as it keeps rates steady
The emerging trend of central banks talking like hawks and walking like doves amid supply chain disruptions and persistent inflation continued as the Bank of Canada kept its policy rate at 0.25% on Wednesday. The central bank signaled that it intends to end its quantitative easing program and move ... READ MORE >
RSM Canada Financial Conditions Index: Accommodation to continue while economy shows signs of revitalization
At its June policy meeting, the Bank of Canada reiterated its intention to maintain an accommodative monetary policy as uncertainty over the pace of the pandemic abates and the economy recovers. As it has for the past 16 months, the bank is keeping its policy rate at near-zero to maintain liquidity ... READ MORE >
RSM Canada Financial Conditions Index: Accommodation to continue while economy recovers
The Bank of Canada on Wednesday reiterated its intention to maintain an accommodative monetary policy stance as the economy continues to recover and as financial conditions remain one standard deviation above neutral. As it has for the past 16 months, the central bank is keeping its policy rate at near ... READ MORE >
RSM Canada Financial Conditions Index: Bank of Canada providing global leadership
The next Bank of Canada monetary policy decision is three weeks away, and is coming at a time when talk is focused on when central banks will tighten their accommodative policies prompted by the global health crisis. The global economy is off to a better start than expected this year, prompting ... READ MORE >
Bank of Canada policy decision: Tapering bond purchases by $3 billion a week
An improved economic outlook and growing confidence among central bankers have created the conditions in which the Bank of Canada is now comfortable paring back the pace of bond purchases by $3 billion per week. The central bank’s announcement on Wednesday represents a slowing in the pace of ... READ MORE >