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.
The Bank of Canada has introduced its first Reconciliation Action Plan, marking a significant step in its commitment to improving relations with Indigenous Nations and Peoples. The plan aims to foster an inclusive organizational culture and support thriving Indigenous economies.
External Deputy Governor Nicolas Vincent provided an inside look at how the Bank of Canada’s Governing Council reaches its monetary policy decisions. Speaking to the Chambre de commerce et industrie de Sherbrooke, Vincent detailed the comprehensive process undertaken by the council.
The Bank of Canada has released a summary of the deliberations by its Governing Council that led to the monetary policy decision on September 4, 2024. This account provides insight into the discussions held during stage three of the Bank's monetary policy decision-making process, which occurs after members have received all staff briefings and recommendations.
Governor Tiff Macklem addressed the Canada-UK Chamber of Commerce in London, United Kingdom, discussing how geopolitical, economic, and social forces are transforming global trade. He highlighted the benefits of open trade post-World War II and emphasized its importance for small open economies like Canada. However, he noted that global trade growth has slowed over the past 15 years due to changing production dynamics, geopolitical tensions, and waning public support.
The Bank of Canada has announced the nomination period for its 2025 Governor's Award, inviting Canadian universities to nominate exceptional academics. For this period, applications for the Fellowship Award are not being accepted as all awards are currently held.
The Bank of Canada today reduced its target for the overnight rate to 4¼%, with the Bank Rate at 4½% and the deposit rate at 4¼%. The Bank is continuing its policy of balance sheet normalization.