Bank of Canada Raises Rates 0.50% With Risk of Elevated Inflation Becoming Entrenched Risen

Bank of Canada raised overnights rate by half a percentage point from 1.0% to 1.5% as expected.  It was the third consecutive rate hike, matching the 50bps rise from the Bank’s previous meeting and pushing borrowing costs to the highest level since the pandemic started. The BoC said interest rates will need to rise further and the Governing Council is prepared to act more forcefully if needed to meet its commitment to achieve the 2% inflation target. The risk of elevated … Continue reading “Bank of Canada Raises Rates 0.50% With Risk of Elevated Inflation Becoming Entrenched Risen”

Bank of Canada Raises Rates 0.50% With Substantial Upward Revision on Inflation

Bank of Canada raised overnights rate by half a percentage point from 0.50% to 1.0%. The last time the BoC raised its benchmark rate by a half percentage point was over two decades ago, in May 2000. The bank also said it would begin reducing the assets on its balance sheet on April 25. The Bank of Canada revised sharply upward its outlook for inflation, while also increasing the growth forecast for 2022. The Bank of Canada raised the overnight … Continue reading “Bank of Canada Raises Rates 0.50% With Substantial Upward Revision on Inflation”

Bank of Canada Leaves Rates Unchanged At 0.25% Removed Exceptional Forward Guidance

Bank of Canada left rates unchanged at 0.25% where markets were pricing in a 70% chance of a hike. BoC removed its exceptional forward guidance on its policy interest rate. The labor market has tightened significantly. Persistent supply constraints to keep inflation close to 5% in H1 2022 The Bank of Canada held the overnight rate at 1/4 per cent. The Bank Rate is correspondingly 1/2 per cent The deposit rate is 1/4 per cent. BoC Highlights BOC says overall … Continue reading “Bank of Canada Leaves Rates Unchanged At 0.25% Removed Exceptional Forward Guidance”

Bank of Canada Leaves Rates Unchanged At 0.25% As Unexpected

Bank of Canada left rates unchanged at 0.25% in line with forecasts and maintained its forward guidance, which sees a rise in the overnight rate sometime in the middle quarters of 2022. Last meeting the BoC surprised by ending the QE bond buying program from $2 billion per week to nil, it was expected to cut to $1billion a week. The Bank of Canada held the overnight rate at 1/4 per cent. The Bank Rate is correspondingly 1/2 per cent … Continue reading “Bank of Canada Leaves Rates Unchanged At 0.25% As Unexpected”

Bank of Canada Ends Bond Purchases Abruptly and Unexpectantly Sending Loonie Sharply Higher

Bank of Canada surprised by ending the QE bomd buyimg program from $2 billion per week to nil, it was expected to cut to $1billion a week. The BoC leftthe key lending rate at 0.25 percent Wednesday as expected.

With Election in Sight Bank of Canada Leaves Rates and Bond Purchases Unchanged

No surprises from the Bank of Canada left the key lending rate at 0.25 percent Wednesday as expected. BoC repeated it will hold interest rate at the effective lower bound until economic slack is absorbed. Bank of Canada kept bond purchases to C$3 billion a week.

Bank of Canada Leaves Rates and Bond Purchases Unchanged at C$3 Billion a Week

The Bank of Canada left the key lending rate at 0.25 percent on Wednesday as expected. BoC repeated it will hold interest rate at the effective lower bound until economic slack is absorbed. Bank of Canada kept bond purchases to C$3 billion a week with its projection for full recovery to second half of 2022.

Bank of Canada Leaves Rates Unchanged, Reduces Bond Purchases to C$3 Billion a Week

The Bank of Canada left the key lending rate at 0.25 percent on Wednesday as expected. BoC repeated it will hold interest rate at the effective lower bound until economic slack is absorbed. Bank of Canada reduces bond purchases to C$3 billion a week, moves forward its projection for full recovery to second half of 2022.

Bank of Canada Leaves Rates Unchanged Says Labor Market A Long Way From Recovery

The Bank of Canada left the key lending rate at 0.25 percent on Wednesday as expected. BoC repeated it will hold interest rate at the effective lower bound until economic slack is absorbed. GDP growth in the first quarter of 2021 now expected to be positive, rather than the contraction forecast in January

Bank of Canada Leaves Rates Unchanged Expects Strong Rebound in Q2

The Bank of Canada left the key lending rate at 0.25 percent on Wednesday as expected. BoC repeated it will hold interest rate at the effective lower bound until economic slack is absorbed, BoC repeats to buy more longer-dated bonds, with pace of QE to be gradually reduced to $4B week from $5B week