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. In its press release, the BoC cites the escalation of international trade conflict as a factor in the constricting of business investment, and thus, is a heavy blow to the global economic momentum that it had projected to be an influential growth factor in its Monetary Policy Report (MPR) back in July. Uniquely, the BoC remains the only … Continue Reading
Statistics Canada’s June 30, 2015 announcement regarding the nation’s economic results for the month of April, measured in terms of national Gross Domestic Product, has many bankers and financial institutions predicting another Bank of Canada interest rate cut sometime during 2015.
Although real GDP fell by only 0.1% in April, the decrease marks a fourth consecutive monthly decline. Canada’s poor economic performance of late is owed, in part, to the fall in oil and gas extraction as conventional crude and non-conventional oil companies combined for a 3.4% month-over-month production cutback. Statistics Canada pointed to maintenance shut downs and production difficulties … Continue Reading