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 |
---|---|
Jan 29, 2025 | |
Oct 23, 2024 | |
Jul 24, 2024 | |
Apr 10, 2024 | |
Jan 24, 2024 | |
Oct 25, 2023 | |
Jul 12, 2023 | |
Apr 12, 2023 | |
-
- CA BOC Monetary Policy Report News
- From bankofcanada.ca|Jan 29, 2025|1 comment
Good morning. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss our policy decision and the Monetary Policy Report (MPR). Today, we lowered the policy interest rate by 25 basis points. This is our sixth consecutive decrease and brings our policy rate to 3%. We also announced our plan to complete the normalization of our balance sheet, ending quantitative tightening. The Bank will restart asset purchases in early March, beginning gradually so that its balance sheet stabilizes this year and then begins to grow modestly in line with economic growth. We have three main messages this morning. First, inflation has been close to the 2% target since last summer. Monetary policy has worked to restore price stability. Second, lower interest rates are boosting household spending, and economic activity is picking up. Third, the potential for a trade conflict triggered by new US tariffs on Canadian exports is a major uncertainty. This could be very disruptive to the Canadian economy and is clouding the economic outlook. post: BOC'S GOV. MACKLEM: MONETARY POLICY CANNOT OFFSET TARIFFS BUT CAN HELP THE ECONOMY ADJUST. post: BOC'S GOV. MACKLEM: LONG-LASTING AND BROAD-BASED TRADE CONFLICT WOULD BADLY HURT ECONOMIC ACTIVITY IN CANADA. post: BOC'S GOV. MACKLEM: WITH INFLATION BACK AROUND THE 2% TARGET, WE ARE BETTER POSITIONED TO BE A SOURCE OF ECONOMIC STABILITY. post: BOC'S GOV. MACKLEM: WE CAN'T USE RATES TO LEAN AGAINST WEAKER OUTPUT AND HIGHER INFLATION AT THE SAME TIME.
- From static.bankofcanada.ca|Jan 29, 2025
The economic outlook presented in this Monetary Policy Report does not incorporate any new US taris, although it does recognize that the threat of taris is already aecting nancial markets and business decisions. This assumption reects a situation that is evolving rapidly, along with the high degree of uncertainty around whether wide-ranging taris will be imposed and the specics of those taris and any possible retaliation. A detailed discussion of how the Canadian economy could be impacted if signicant new taris were to be imposed, including an illustrative scenario, can be found in In focus: Evaluating the potential impacts of US taris. Overview Ination in Canada has been around 2% since August 2024. Ination rates for most major components of the consumer price index are below their historical averages, but ination in shelter prices is elevated and is easing slowly. Ination expectations have largely normalized. Ination is projected to be volatile through March, reecting the eects of the GST/HST holiday on some goods and services. Ination is expected to remain near the 2% target over the projection horizon. Growth in the Canadian economy was softer than expected in the third quarter of 2024, but there are signs activity has since gained momentum despite a slowdown in population growth. Past interest rate cuts are contributing to an increase in household spending and housing activity. The labour market is still soft, and there are some signs that wage growth has slowed. The economy remains in modest excess supply. Canadian economic post:
BOC: ANNUALIZED Q4 GDP SEEN AT 1.8% (VS 2.0% IN OCTOBER), Q1 2.0%. post:
BOC: INFLATION TO AVERAGE 2.3% IN 2025 (VS 2.2% IN OCTOBER), 2.1% IN 2026 (VS 2.0%). post:
BOC FORECASTS DO NOT TAKE INTO ACCOUNT FOR THE POTENTIAL EFFECT OF US TARIFFS. post: BOC: POTENTIAL OUTPUT GROWTH IS EXPECTED TO SLOW FROM 2.5% IN 2024 TO AROUND 1.5% ON AVERAGE OVER 2025 AND 2026, DOWN FROM OCTOBER FORECAST OF 1.9% IN 2025 AND 2026.
- From bankofcanada.ca|Jan 29, 2025
The Bank of Canada today reduced its target for the overnight rate to 3%, with the Bank Rate at 3.25% and the deposit rate at 2.95%.1 The Bank is also announcing its plan to complete the normalization of its balance sheet, ending quantitative tightening. The Bank will restart asset purchases in early March, beginning gradually so that its balance sheet stabilizes and then grows modestly, in line with growth in the economy.2 Projections in the January Monetary Policy Report (MPR) published today are subject to more-than-usual uncertainty because of the rapidly evolving policy landscape, particularly the threat of trade tariffs by the new administration in the United States. Since the scope and duration of a possible trade conflict are impossible to predict, this MPR provides a baseline forecast in the absence of new tariffs. In the MPR projection, the global economy is expected to continue growing by about 3% over the next two years. Growth in the United States has been revised up, mainly due to stronger consumption. Growth in the euro area is likely to be subdued as the region copes with competitiveness pressure post: BOC: RATE CUTS ARE STARTING TO BOOST ECONOMY; RECENT STRENGTHENING IN BOTH CONSUMPTION AND HOUSING ACTIVITY IS EXPECTED TO CONTINUE. post: BOC: CPI INFLATION WILL BE AROUND THE 2% TARGET OVER THE NEXT TWO YEARS. post:
BOC ANNOUNCES AN END OF QUANTITATIVE TIGHTENING, AND WILL GRADUALLY RESTART ASSET PURCHASES IN EARLY MARCH. post: BOC: IF BROAD-BASED AND SIGNIFICANT TARIFFS WERE IMPOSED, THE RESILIENCE OF CANADA'S ECONOMY WOULD BE TESTED.
- From thestar.com|Jan 29, 2025|1 comment
The Bank of Canada is expected to make a quarter percentage point cut to its key interest rate Wednesday morning in the face of political and economic uncertainties in the form of elections and U.S. President Donald Trump’s tariff threats. Experts largely believe the central bank, in its first rate announcement of 2025, will cut its overnight rate to three per cent, according to a Bloomberg survey of 22 economists. Bank Governor Tiff Macklem is expected to emphasize the increasing trade tensions and imminent provincial and federal ...
- From scotiabank.com|Jan 25, 2025
Welcome to tariff week. Or maybe it’s global central bank week. Or growth and inflation week. Or how about earnings week. If you think January has been exhausting—and I have some sympathy for that—then it’s not going to release its grip on you just yet as the final week of the month is jam-packed with expected developments. Developments that may fan enormous market volatility. Eight central banks will weigh in with their first decisions of the new year this week including the Federal Reserve, the ECB, the Bank of Canada, and several ...
- From bankofcanada.ca|Oct 23, 2024
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
- From bankofcanada.ca|Oct 23, 2024
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.
- From bnnbloomberg.ca|Oct 23, 2024
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 ...
Released on Jan 29, 2025 |
---|
Released on Oct 23, 2024 |
---|
- Details