Carney Shuts Door on Liquidity Programs as Fed Readies QE2

Governor Mark Carney is closing the door on liquidity programs the Bank of Canada started during the credit crisis, just as the Federal Reserve may expand asset purchases to sustain the U.S. economic recovery. Canada’s central bank will reduce the relative amount of bonds available to securities dealers at government auctions, reversing steps it took [...]

Bank of Canada Slashes Growth Outlook

Mark Carney, the Bank of Canada governor, said Wednesday Canadians must look beyond the short-term economic softening and focus on longer-term concerns such as boosting productivity growth and capping growth in household indebtedness. The governor’s comments emerged after the release of the central bank’s latest economic outlook, which indicated economic growth in Canada lagged the [...]

Inflation-Bond Spreads Rise as Canadian Central Bank Acts

Canada’s real-return bonds are signaling faster inflation as the nation’s central bank keeps its target interest rate unchanged amid concern that the global economic recovery is faltering. The breakeven rate on 10-year inflation-protected bonds, a measure of what investors predict for average consumer price inflation during that period, touched 2.132 percent yesterday, the highest level [...]

Canadian dollar falls as oil slips (National Post)

The Canadian dollar edged lower against the U.S. currency on Monday as the price of oil, a key Canadian export, dropped below US$35, and the market braced for the Bank of Canada’s interest rate decision on Tuesday. Read more….

Canadian dollar falls as oil slips (National Post)

The Canadian dollar edged lower against the U.S. currency on Monday as the price of oil, a key Canadian export, dropped below US$35, and the market braced for the Bank of Canada’s interest rate decision on Tuesday. Read more….

(BOC) Bank of Canada Lowers Overnight Rate Target by 1/2 Percentage Point to 1 Per cent

The Bank of Canada today announced that it is lowering its target for the overnight rate by one-half of a percentage point to 1 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 1 1/4 per cent. The outlook for the… Read more….

(BOC) Bank of Canada Releases Monetary Policy Report

In the Update, the Bank noted that the outlook for the global economy has deteriorated since the October Monetary Policy Report, with the intensifying financial crisis spilling over into real economic activity. Heightened uncertainty is undermining business and household confidence worldwide and further eroding domestic demand. Major advanced economies, including… Read more….

Bank of Canada Cuts Rates to 1%, More Easing Ahead

The Bank of Canada cut interest rates to 1.00 percent, the lowest level ever for the 75 year old central bank and signaled that they could bring interest rates down to US levels. The historic move was motivated by the sharp downturn in the US economy and the continual slide in oil prices. Not only [...]