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Bank of Canada holds rate steady, says coronavirus economic recovery likely by 2022

mschmit — Wed, 28 Oct 2020 07:58:54 +0000

The Bank of Canada kept its key interest rate on hold Wednesday as it said the country’s economy won’t recoup the losses from the coronavirus until 2022, with the road to recovery dependent on the path of the pandemic. In July, the Bank of Canada said it believed the country had been spared from a […]

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Bank of Canada warns of uneven recovery despite better than expected bounce back

mschmit — Wed, 09 Sep 2020 08:42:54 +0000

The Bank of Canada sought Wednesday to temper economic excitement about a sharper-than-expected rebound from the depths of the coronavirus crisis, pointing to worrying trends that signal all is still not well. In a statement, the central bank’s governing council said the bounce-back activity in the third quarter looks to be faster than it anticipated […]

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Macklem says central bankers must speak simply or risk losing public trust

mschmit — Fri, 28 Aug 2020 05:32:06 +0000

The head of the Bank of Canada made an international pitch to his fellow central bankers on Thursday to forge closer ties with average citizens to manage economic expectations through the pandemic, or risk losing public trust and face an existential crisis. Speaking remotely at an annual gathering usually hosted in Jackson Hole, Wyo., governor […]

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A crisis of conventional thinking in central banking

mschmit — Fri, 20 Mar 2020 05:12:08 +0000

Historically, financial institution decision-makers come from the same educational backgrounds, which have rewarded them for thinking in linear and conventional ways, said David McWilliams, professor of global economics at Trinity College Dublin, during a session at the Canadian Investment Review’s Plan Sponsor Exchange conference in February. The single biggest concentration of conventional thinkers is deep […]

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Fed takes emergency steps to slash rates and ease bank rules

mschmit — Mon, 16 Mar 2020 04:12:46 +0000

The Federal Reserve took massive emergency action Sunday to try to help the economy withstand the coronavirus by slashing its benchmark interest rate to near zero and saying it would buy $700 billion in Treasury and mortgage bonds. The Fed’s surprise announcement signalled its rising concern that the viral outbreak will depress economic growth in […]

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