The Bank of Canada (BoC) recently announced its decision to maintain the overnight rate target at 1 ¾%– while the Bank Rate and deposit rate are 2% and 1 ½% respectively – resulting in no shortage of backlash.
Recently, Bank of Canada governor Stephen Poloz announced an increase in the interest rate from 1.25% to 1.5%. The increase comes as the Bank of Canada predicts a continued growth in the Canadian economy from exports and business investments. However,
Many predicted that 2017 would be another record year for Canadian mergers and acquisitions (M&A). There are also currently some predictions that interest rates will continue to rise despite the recent announcement of a contraction in the economy.
For a second time this year, the Bank of Canada (the Bank) has raised interest rates. As of September 6, 2017, the overnight lending rate is 1 per cent, up from 0.75 per cent.
Two increases in a
On July 12, 2017, the Bank of Canada raised its overnight lending rate to 0.75 per cent from 0.5 per cent. This was the first such increase in almost 7 years, after a prolonged policy of fiscal stimulus in
On December 7, the Bank of Canada (the Bank) announced that it will be maintaining its overnight rate at 0.5%, closing out a year of historically low interest rates. The overnight rate is the interest rate at which large
The term “negative interest rates” was introduced into the Canadian vocabulary on December 8, 2015, when the Bank of Canada announced that it would be willing to use this “unconventional monetary policy tool” in the event of economic crisis. With
The most recent EU summit took place in late June, leading to an agreement among leaders to create a joint banking supervisory body for the Eurozone and implement a planned bailout fund for struggling banks. While analysts have applauded these steps as key achievements toward steadying markets in both the short and long term, questions remain with respect to the future of the Eurozone and its impact on existing and new transactions for Canadian companies.
Preparing for the unknown future of the Euro requires an understanding of the factors that may affect your business. There are various potential outcomes to consider: Will one or more member states pull out of the Euro? If a member state pulls out of the Euro and adopts a new currency, how may this affect existing transactions? Will obligations expressed as payable in the Euro be re-denominated into a new currency? What can be done to secure and improve the situation for future transactions?
While the answers to these questions will depend on how events play out in the Eurozone, preparation is essential. Understanding the range of circumstances under which a member state can pull out from the Euro (i.e., removal or consensual departure), the type of legislation that may be passed to deal with the issue, the terms of the transaction in question, and the courts whose jurisdiction the transaction falls under, are important safeguards to ensuring as much predictability and stability as possible.
