The Bank of Canada's Governing Council held a series of meetings starting December 6, 2024, to deliberate on the monetary policy decision announced on December 11, 2024.
The latest Market Participants Survey for the third quarter of 2024, conducted from September 18 to 27, gathered insights from around 30 financial market participants on Canada's economic outlook.
The Bank of Canada has announced the commencement of the registration period for retail payment service providers (PSPs) under the Retail Payments Activities Act (RPAA).
The Bank of Canada has announced a reduction in its target for the overnight rate to 3¾%, with the Bank Rate set at 4% and the deposit rate at 3¾%. This move is part of the bank's ongoing balance sheet normalization efforts.
Good morning. The central bank has announced a reduction in the policy interest rate by 50 basis points, bringing it down to 3.75%. This marks the fourth consecutive decrease since June. "We took a bigger step today because inflation is now back to the 2% target and we want to keep it close to the target," said an official.
Monetary policy efforts in Canada have successfully reduced inflation, bringing it down to around 2%. This level is expected to stay within the Bank of Canada's target range of 1% to 3%. The decline in inflation is attributed to lower energy prices and reduced underlying inflationary pressures. However, the distribution of inflation rates across various components remains broader than usual.
The Bank of Canada's third-quarter 2024 Business Outlook Survey indicates continued muted inflationary pressures among businesses. The survey, conducted from August 8 to 30, involved interviews with senior management of about 100 firms across Canada. It highlights weak demand and excess capacity as primary factors affecting business conditions.
The Canadian Survey of Consumer Expectations for the third quarter of 2024 indicates a decline in consumers' perceptions of current inflation and their expectations for future inflation. Although these expectations have decreased, they remain above pre-pandemic levels. The survey, conducted online from August 6 to 23, 2024, with follow-up phone interviews from September 3 to 12, highlights that strong government spending and high housing costs are seen as contributors to inflation.
The Bank of Canada has announced that it will begin releasing its Monetary Policy Report (MPR) in an interactive, web-based format starting October 23, 2024. This quarterly report, produced by the Bank’s Governing Council, provides a base-case projection for inflation and growth within the Canadian economy, alongside projections for the global economy and an assessment of associated risks.
The Bank of Canada's Board of Directors has commenced a recruitment process to appoint an additional external Deputy Governor. The Board has established a selection committee and engaged the services of recruitment firm Boyden to facilitate this search. Advertisements for the position have been posted online.
The Bank of Canada Museum has launched a new educational resource titled "You Are the Economy." This free suite of six lesson plans is aimed at Grade 7–12 students across Canada, focusing on economic and financial literacy. The resource is available in both official languages and aligns with the latest Canadian curricula.
The Institute of International Finance and the Canadian Bankers Association hosted a forum on economic growth amid uncertainty, featuring a speech that addressed various global challenges. The speaker acknowledged the current state of uncertainty due to geopolitical tensions, technological disruptions, climate change impacts, political instability, and fiscal unpredictability.