John Crow – Interest Rates and Targets in the Budget
From: John Crow To: The Minister of Finance and his budget builders Date: June 2, 2016 Re: Interest Rates and Targets in the Budget You followed the longstanding budget convention of broad economic and financial assumptions explicitly based on private sector forecasts. This helps to focus attention on tax and expenditure actions rather than on the […]Doug Porter – Canadian Macro Policy: The Mix is In
From: Doug Porter To: Policymakers and Concerned Canadians Date: May 30, 2016 Re: Canadian Macro Policy: The Mix is In The world has witnessed an important shift in policy prescriptions recently. After years of urging fiscal restraint on deeply indebted governments following the financial crisis, as well as ever-easier monetary policy, the conventional wisdom appears to have undergone a […]Craig Alexander on BNN: Bank of Canada decision expected to factor in Fort Mac, Fed
C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate at 0.50 for the next year
May 19, 2016 — The C.D. Howe Institute’s Monetary Policy Council (MPC) today recommended that the Bank of Canada keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 0.50 percent at its next announcement on May 25, 2016. Looking ahead, the Council called for the Bank to hold the target at 0.50 percent over the next 12 months.
The MPC provides an independent assessment of monetary stance consistent with the Bank of Canada’s 2 percent inflation target. William Robson, the Institute’s President and CEO, chairs the Council.
Council members make recommendations for the Bank of Canada’s upcoming interest-rate announcement, the subsequent…
C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate at 0.50 through 2016; Looks for 0.75 Percent by April 2017
April 7, 2016 — The C.D. Howe Institute’s Monetary Policy Council (MPC) today recommended that the Bank of Canada keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 0.50 percent at its next announcement on April 13, 2016. Looking ahead, the Council called for the Bank to hold the target at 0.50 percent through the end of the year, raising it to 0.75 percent by April 2017.
The MPC provides an independent assessment of monetary stance consistent with the Bank of Canada’s 2 percent inflation target. William Robson, the Institute’s President and CEO, chairs the Council.
Council members make recommendations for the Bank of Canada’s upcoming…
Mounting Evidence: Findings from Natural Experiments in Inflation Targeting
International evidence shows the wide economic benefits of inflation targeting, says a ground-breaking C.D. Howe Institute report. In “Mounting Evidence: Findings from Natural Experiments in Inflation Targeting,” author Michael Parkin shows how the evidence broadly supports the merits of inflation targeting as a monetary policy tool for central banks that have clear independence. Looking for Liquidity: Banking and Emergency Liquidity Facilities
The Bank of Canada should start preparing for the next financial crisis, according to a new C.D. Howe Institute report. In “Looking for Liquidity: Banking and Emergency Liquidity Facilities,” author Jeremy Kronick urges the Bank (BoC) to establish new permanent liquidity pools that would be instantly available in times of crisis. The Common Room: Bank of Canada Should Prepare Now for the Next Financial Crisis
How should the Bank of Canada start preparing for the next financial crisis? Read the full report More Angst Than Mystery In The Loonie’s Decline: Globe And Mail Op-ed
The ongoing decline of the Canadian dollar is generating many headlines and lots of angst. Of all the questions I receive from journalists and students, the cause of our currency’s fluctuations is surely the most common. But there really isn’t much of a mystery here – or at least there shouldn’t be.
Let’s start with the facts. Our dollar was worth 73 U.S. cents in 1995 and dropped to 63 cents by 2002. It then rose steadily to 93 cents by 2008 and kept rising to be above par in 2011. Over the past four years, the Canadian dollar has fallen again; it is now just above 70 cents.
Economists have long been studying the causes of exchange-rate fluctuations, especially after the collapse of the Bretton Woods agreement in the…
On growth, Stephen Poloz could use a little help: Globe and Mail Op-Ed
Bank of Canada Governor Stephen Poloz’s speech in Ottawa on Thursday got lots of attention. As usual, analysts and traders parsed it for clues about short-term interest rates. Economists noted the Governor’s compelling arguments for letting the Canadian dollar’s external value move as circumstances change. Less happy, however, is the intense focus on Mr. Poloz – and other central bankers – as masters of economic growth. Engineering sustainable increases in living standards is a task for which he and his counterparts around the world could really use some help.
On interest rates, the Governor’s speech highlighted the divergence between the U.S. Federal Reserve Board, responding to economic expansion by tightening, and other…
C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate at 0.50 Percent until mid-2016; Hike to 0.75 Percent by next November
November 26, 2015 — The C.D. Howe Institute’s Monetary Policy Council (MPC) today recommended that the Bank of Canada keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 0.50 percent at its next announcement on December 2, 2015. Looking ahead, the Council called for the Bank to hold the target at 0.50 percent until May 2016 and hike it to 0.75 percent by November 2016.
The MPC provides an independent assessment of the monetary stance appropriate for the Bank of Canada as it pursues its 2 percent inflation target. William Robson, the Institute’s President and Chief Executive Officer, chairs the Council.
Council members make recommendations for…
C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate at 0.50 Percent through Mid-Year; Hike to 0.75 Percent by October 2016
October 15, 2015 — The C.D. Howe Institute’s Monetary Policy Council (MPC) today recommended that the Bank of Canada keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 0.50 percent at its next announcement on October 21, 2015. Looking ahead, the Council called for the Bank to hold the target at 0.50 percent through to April of 2016 and hike it to 0.75 percent by October of 2016.
The MPC provides an independent assessment of the monetary stance appropriate for the Bank of Canada as it pursues its 2 percent inflation target. William Robson, the Institute’s President and Chief Executive Officer, chairs the Council.
Council members make…