Amidst much speculation, the Bank of Canada announced today that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.
It appears 2016 is picking up where 2015 left off, with no change to interest rates by the Bank of Canada. Although this may appear to be non-news, given the volatility of the Canadian economy with the price of oil and the loonie continuing downward, sometimes doing nothing says a lot.
“Prices for oil and other commodities have declined further and this represents a setback for the Canadian economy. GDP growth likely stalled in the fourth quarter of 2015, pulled down by temporary softness in the U.S. economy, weaker business investment and several other temporary factors. The Bank now expects the economy’s return to above-potential growth to be delayed until the second quarter of 2016.”
Here are the remaining announcement dates for 2016:
- Wednesday 9 March
- Wednesday 13 April*
- Wednesday 25 May
- Wednesday 13 July*
- Wednesday 7 September
- Wednesday 19 October*
- Wednesday 7 December
*Monetary Policy Report published
All rate announcements will be made at 10:00 (ET), and the Monetary Policy Report will continue to be published concurrently with the April, July, and October rate announcements.
Although it appears to be steady as she goes, hold on to your hat, 2016 appears to be an economic storm (or at the very least a media frenzy).
Here is a copy of the full Bank of Canada announcement.
Bank of Canada Rate Announcement Jan 20th 2016
With a copy of the Monetary Policy for your reference.