CA BOC Monetary Policy Report
It provides valuable insight into the bank's view of economic conditions and inflation - the key factors that will shape the future of monetary policy and influence their interest rate decisions;
The BOC Governor usually holds a press conference to discuss the contents of this report about 75 minutes after release;
- History
Expected Impact / Date | Description |
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Oct 23, 2024 | |
Jul 24, 2024 | |
Apr 10, 2024 | |
Jan 24, 2024 | |
Oct 25, 2023 | |
Jul 12, 2023 | |
Apr 12, 2023 | |
Jan 25, 2023 | |
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- CA BOC Monetary Policy Report News
The Bank of Canada cut 50bps to take the policy rate to 3.75% and explicitly left the door open to further rate cuts with the size and pace to be determined by data and other developments. They also left balance sheet plans unchanged. Cumulative easing to date equals 125bps of cuts. Their actions met our expectations while leaving intact my views on the longer-run risks the BoC may be courting should rapid policy easing continue. Key is that the projections left growth and inflation unchanged despite picking up the pace of easing. ...
Consumer price index (CPI) inflation has fallen and is now around 2%. The recent decline in inflation reflects both lower energy prices and weaker underlying inflationary pressures. Overall, inflation is near target, but the distribution of inflation rates across CPI components remains wider than usual. Over the projection horizon, inflation is expected to remain close to the 2% target. Core inflation is forecast to decline gradually. There are both upside and downside risks to the Bank of Canada’s outlook for inflation, and the Bank is equally concerned with inflation rising above the target or falling below it. The Canadian economy has evolved broadly as anticipated. Relative to the July forecast, growth in the second quarter was slightly stronger than expected, while the third quarter looks weaker. Gross domestic product (GDP) per person continues to decline. Energy exports are rising, and growth in both business investment and government spending is slowing. The Canadian economy continues to be in e post: BANK OF CANADA GOVERNOR TIFF MACKLEM SAYS DATA AND BANK SURVEYS SUGGEST WE ARE BACK TO LOW INFLATION; THIS IS GOOD NEWS FOR CANADIANS post: MACKLEM: NOW OUR FOCUS IS TO MAINTAIN LOW, STABLE INFLATION; WE NEED TO STICK THE LANDING post: MACKLEM: BANK CUT BY 50 BPS BECAUSE INFLATION IS BACK TO THE 2% TARGET AND WE WANT TO KEEP IT THERE
The Bank of Canada today reduced its target for the overnight rate to 3¾%, with the Bank Rate at 4% and the deposit rate at 3¾%. The Bank is continuing its policy of balance sheet normalization. The Bank continues to expect the global economy to expand at a rate of about 3% over the next two years. Growth in the United States is now expected to be stronger than previously forecast while the outlook for China remains subdued. Growth in the euro area has been soft but should recover modestly next year. Inflation in advanced economies has declined in recent months, and is now around central bank targets. Global financial conditions have eased since July, in part because of market expectations of lower policy interest rates. Global oil prices are about $10 lower than assumed in the July Monetary Policy Report (MPR). post: BANK OF CANADA LOWERS O/N INTEREST RATE TO 3.75% 23 || BOC SAYS IT EXPECTS INFLATION TO REMAIN CLOSE TO TARGET OVER THE PROJECTION HORIZON, WITH UPWARD AND DOWNWARD PRESSURES ROUGHLY BALANCING OUT BOC: WITH INFLATIONARY PRESSURES NO LONGER BROAD-BASED, BUSINESS AND CONSUMER…Bank of Canada Cuts Interest Rate to 3.75% The Bank of Canada has lowered its policy interest rate by 50 basis points, bringing the target for the overnight rate to 3.75%. The Bank Rate is now at 4%, with the deposit rate also set at 3.75%. This move comes as part of the central bank’s ongoing effort to normalize its balance sheet while managing economic growth and inflation. Key highlights from the announcement include: Global and Domestic Growth: The global economy is expected to grow at approximately 3% over the next two years. While growth forecasts for the United States have improved, expectations for China remain weak, and the euro area shows signs of a modest recovery next year. Meanwhile, Canada’s GDP growth reached about 2% in the first half of the year, with a projected slowdown to 1.75% in the latter half.
The Bank of Canada is likely to make a jumbo cut to interest rates, acknowledging that borrowing costs should fall more quickly as inflation wanes and economic growth stagnates. Markets and economists expect policymakers led by Governor Tiff Macklem will cut the policy rate by half a percentage point to 3.75% on Wednesday, the first reduction of that magnitude since the Covid-19 pandemic. The large cut — which is expected by all but one of Canada’s biggest lenders — would signal some urgency to bring the benchmark overnight rate to ...
Expectations that the Bank of Canada will cut rates by 50 basis points at its October meeting firmed up after the latest CPI data. Nevertheless, markets are not fully convinced of an outsized move, hence, there is a little bit of uncertainty heading into Wednesday’s decision by Canada’s central bank. On the face of it, the Canadian economy is not in great shape. Growth has been sluggish at best since late 2022 and the jobless rate has jumped from a post-pandemic low of 4.8% to around 6.5%. More importantly, the Bank of Canada has ...
Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers answer reporters’ questions following the policy rate decision and the release of the Monetary Policy Report.
Good morning. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss the July Monetary Policy Report (MPR) and today’s policy announcement. Today, we lowered our policy interest rate a further 25 basis points to 4.5%. This decision reflects three key considerations. First, monetary policy is working to ease broad price pressures. Second, with the economy in excess supply and slack in the labour market, the economy has more room to grow without creating inflationary pressures. Third, as inflation gets closer to ...
Consumer price index (CPI) inflation in Canada is moving closer to the 2% target as monetary policy works to reduce price pressures. Inflation is no longer broad-based, and measures of core inflation have eased significantly. However, some pressures remain, particularly in prices for services, and progress back to the target is expected to be uneven. The global economy is expected to grow at around 3% over the projection horizon. In the United States, economic growth has slowed after a period of surprising strength. Past increases in ...
Released on Oct 23, 2024 |
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Released on Jul 24, 2024 |
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