![]() ![]() The last 12 months saw the Bank of Canada rapidly increase its policy rate from 0.25% in March 2022 to the current level of 4.5%, bringing higher prime rates and higher variable and adjustable mortgage rates along with it. Yet they are far above their pre-pandemic level of $120 billion. Currently, the BoC assets total about $382 billion, which has significantly moderated from its peak.By late April 2022, when quantitative tightening (QT) officially began, BoC’s balance sheet stood at $483 billion. ![]() The total assets of the BoC reached a peak of $575 billion in March 2021.BoC acknowledges the upside risk to inflation and reiterates its readiness to increase rates if inflation stays elevated longer than expected.Still, the inflation is expected to come down to around 3% by the middle of the year. BoC is rightly worried about declining productivity and a very tight labour market.The Bank of Canada Maintains Its Policy Rate at 4.5%: These rates are considerably above what the BoC considers neutral, and in addition to quantitative tightening, they should bring down consumption and, consequently, inflation. Thus, the overnight target rate is maintained at 4.5%, while the bank and deposit rates are maintained at 4.75% and 4.5%, respectively. The Bank of Canada (BoC) announced that the economy has broadly evolved in line with its outlook. The Bank of Canada Maintains Its Policy Rate at 4.5% ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |