C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Cut Overnight Rate to 2.75 Percent Next Week and 2.50 Percent in September
March 6, 2025 – The C.D. Howe Institute’s Monetary Policy Council (MPC) calls for the Bank of Canada to lower its target for the overnight rate, its benchmark policy interest rate, to 2.75 percent at its next announcement on March 12th. The MPC further calls for the Bank to leave its target unchanged at 2.75 percent at the […] Ontario’s Financial Future: Leading the Charge for a Competitive and Modernized Regulatory Framework
From: Harvey NaglieTo: Financial regulation observers Date: March 6, 2025Re: Ontario’s Financial Future: Leading the Charge for a Competitive and Modernized Regulatory Framework Ontario faces a pivotal moment. As Canada’s financial capital, it has long benefited from a stable financial sector. However, the evolving global landscape demands more than stability – it requires bold leadership. […] Tariff Response Needs to Include Fast Financial System Modernization
From: Jeremy M. Kronick and Mark ZelmerTo: Financial system policymakersDate: March 3, 2025Re: Tariff Response Needs to Include Fast Financial System Modernization Donald Trump’s tariff threats have underscored the need for Canada to diversify its international trade and reduce interprovincial barriers. If our financial system is to be effective in helping bring about these changes, its regulatory underpinning needs modernization. […] Future-Proofing Canada’s Financial System
Published in the Financial Post. Donald Trump’s tariff threats have underscored the need for Canada to diversify its international trade and reduce interprovincial barriers. If our financial system is to be effective in helping bring about these changes, its regulatory underpinning needs modernization. Canada’s customary glacial pace will not cut it, however. We need to act now. Start with payments. […] C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Cut Overnight Rate to 3.00 Percent Next Week and 2.75 Percent by July
December 5, 2024 – The C.D. Howe Institute’s Monetary Policy Council (MPC) calls for the Bank of Canada to lower its target for the overnight rate, its benchmark policy interest rate, to 3.50 percent at its next announcement on December 11th. The MPC further calls for the Bank to lower the target to 3.25 percent at the following announcement in January, to 3.00 percent by June of 2025, and to 2.75 percent by December of 2025.
The MPC provides an independent assessment of the monetary stance consistent with the Bank of Canada’s 2 percent inflation target. MPC co-chair Jeremy Kronick, the Institute’s Vice-President, Economic Analysis and Strategy, chaired this meeting. MPC members make recommendations for the Bank of Canada’s…
Making Housing More Affordable in Canada: The Need for More Large Cities
Strengthening mid-sized cities like Kitchener/Waterloo, London, and Kamloops – by improving infrastructure, encouraging local business growth, forging university partnerships, and making it easier to build – can reduce in-migration into our big cities, mitigating price pressures there, and help lower costs for everyone. Intelligence Memos: 2024 in Review
To: Our Faithful Readers Date: January 2, 2025 Re: Intelligence Memos: 2024 in Review Intelligence memos are a key way C.D. Howe Institute researchers share their insights about current events. And 2024 had no shortage of material: Canada’s healthcare struggles, housing affordability, the Bank of Canada’s inflation fight, a host of questionable fiscal policies from Ottawa and the […] The High Price of Prudence – Benchmarking Canada’s Property and Casualty Industry (Second Edition)
Study in Brief • Canadians pay higher premiums for property and casualty insurance than citizens in many, if not most, other developed nations. This Commentary uses OECD data and private industry data to compare the national P&C insurance sector’s premiums as a percentage of Gross Domestic Product with its international peers and is an update […] C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Cut Overnight Rate to 3.50 Percent Next Week, 3.00 by Summer, 2.75 Percent in a Year
December 5, 2024 – The C.D. Howe Institute’s Monetary Policy Council (MPC) calls for the Bank of Canada to lower its target for the overnight rate, its benchmark policy interest rate, to 3.50 percent at its next announcement on December 11th. The MPC further calls for the Bank to lower the target to 3.25 percent at the following announcement in January, to 3.00 percent by June of 2025, and to 2.75 percent by December of 2025.
The MPC provides an independent assessment of the monetary stance consistent with the Bank of Canada’s 2 percent inflation target. MPC co-chair Jeremy Kronick, the Institute’s Vice-President, Economic Analysis and Strategy, chaired this meeting. MPC members make recommendations for the Bank of Canada’s…
Council Recommends Keeping Stability Buffer at 3.5 Percent While Urging Major Banks to Stay Prepared
Third Meeting of the C.D. Howe Institute Domestic Stability Buffer Council
At its meeting on November 26th, the C.D. Howe Institute’s Domestic Stability Buffer Council (DSBC) recommended that the Office of the Superintendent of Financial Institutions (OSFI) maintain the Domestic Stability Buffer (DSB) for the domestic systemically important banks (D-SIBs)1 at 3.5 percent at its next setting in December. The DSBC also emphasized the importance of D-SIBs preserving their strong capital positions.
The DSBC provides OSFI, industry participants, and key economic policy voices with an independent assessment of the appropriate size of the buffer in pursuit of OSFI’s mandate of contributing to public confidence in Canada’s…
Graph of the Week: Deposit Preferences Shift as Interest Rates Fluctuate
Term deposits (think GICs) used to be a larger share of total deposits than demand deposits (think chequing accounts). When interest rates hit rock bottom in the Great Financial Crisis, their popularities swapped places. As interest rates started increasing in mid-2022, the gap favouring demand deposits began to narrow, a good thing for an industry […] Mark Zelmer – Change is Afoot. Prudential Regulation Must Change
From: Mark ZelmerTo: Financial sector policy makers and prudential regulatorsDate: October 31, 2024Re: Change is Afoot. Prudential Regulation Must Change Canada has not had a bank failure in over 30 years. But banking is changing, and so prudential regulation of deposit-taking institutions may need to change, too. Bank runs can now cripple an institution in […]