Canada’s central bank published on Feb. 8 a summary of internal deliberations that led to its latest policy rate hike of Jan. 25, a first for the institution in a bid to increase transparency. The account states that the Bank of Canada’s (BoC) governing council began its discussions on whether to maintain or raise the…
Bank of Canada Expects January’s Interest Rate Increase to Be the Last of Hiking Cycle
OTTAWA—The Bank of Canada raised its key interest rate by a quarter of a percentage point (25 basis points) to 4.5 percent on Jan. 25, and indicated that it expects that its rate-hiking cycle is complete, barring any significant future economic surprises. “If economic developments evolve broadly in line with the MPR [monetary policy report]…
Inflation in Canada Dropped Slightly in November but Food Prices Are Rising Faster
Inflation has gone down 0.1 percent in November, reported Statistics Canada on Dec. 21, with the Consumer Price Index (CPI) rising 6.8 percent year-over-year compared to 6.9 percent in October. While the general CPI dropped slightly, food prices marked an increase, rising 11.4 percent year-over-year compared to 11 percent in October. “Food inflation remained broad-based,…
Bank of Canada Made Poor Prediction on End-of-Year Inflation Level, Governor Says
The Bank of Canada made a poor prediction on what Canada’s inflation level would be at the end of 2022, said the bank’s governor, Tiff Macklem. He had previously said he expected the national inflation level to be around 2 percent by the year’s end. “That’s a very big forecast error,” Macklem told the Globe…
Bank of Canada Hikes Key Interest Rate by Another Half Percentage Point to 4.25 Percent
OTTAWA—The Bank of Canada raised interest rates by another 50 basis points (half a percentage point) on Dec. 7, citing an economy that is still overheating with unemployment near historic lows amid ongoing high inflation. The central bank’s policy interest rate is now 4.25 percent, but language about future interest rate increases was tweaked from…
Inflation Would Be Lower if Ottawa Had Spent Less on Pandemic Stimulus: Bank of Canada Governor
Canada’s current inflation rate of 6.9 percent would have been lower if the federal government had spent less on pandemic stimulus or stopped stimulating the economy earlier, says Bank of Canada Governor Tiff Macklem. Macklem appeared before the House of Commons finance committee yesterday, where he faced questions from all parties about his thoughts on…
Inflation Relief Measures Should Be Well Targeted and Temporary, Says Macklem
Governments looking to provide inflation relief to Canadians should choose measures that are well targeted and temporary, says Bank of Canada governor Tiff Macklem. At a House of Commons committee meeting Wednesday, Conservative MP Adam Chambers asked the governor which of two options is a better way to deliver relief without fuelling inflation: direct transfers to low-income Canadians or energy relief packages. In…
‘Severe Recession’ Unlikely, Says Bank of Canada Governor
While economic slowdowns are likely, Canada will not experience a “severe recession” in upcoming months, says Bank of Canada (BoC) Governor Tiff Macklem. “Growth for the next three quarters is roughly zero, which means we’re just about as likely to have a couple of quarters of negative growth as we are to have a couple…
Macklem, Rogers to Appear Before Senate Banking Committee Tuesday Evening
Bank of Canada governor Tiff Macklem and senior deputy governor Carolyn Rogers are expected to testify before the Senate banking committee this evening. Last week, the central bank raised interest rates for the sixth consecutive time this year. The Bank of Canada hiked its key interest rate by half a percentage point on Wednesday and…
Bank of Canada’s Half-Point Hike Viewed as Signalling the End of Rising Rates Is in Sight
News Analysis OTTAWA—The Bank of Canada gave a modest surprise on Oct. 26 by raising its overnight rate target by only 50 basis points (half a percentage point)—instead of 75 basis points—to 3.75 percent. Such a move could indicate the end is in sight for one of the most aggressive rate-hiking cycles the BoC has…
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