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Bank of Canada meeting of January 17, 2018

Bank of Canada, central bank

Bank of Canada, central bankIn the meeting of January 17, 2018, the Bank of Canada (BoC) has increased the overnight rate target to 1 1/4 percent. You can download the interest rate announcement (Press Release) of the meeting and the last Monetary Policy report (both in pdf format) at the end of the article.

The Bank carries out monetary policy by influencing short-term interest rates. It does this by raising and lowering the target for the overnight rate.

The overnight rate is the interest rate at which major financial institutions borrow and lend one-day (or "overnight") funds among themselves; the Bank sets a target level for that rate. This target for the overnight rate is often referred to as the Bank's policy interest rate.

The objective of monetary policy is to preserve the value of money by keeping inflation low, stable and predictable. This allows Canadians to make spending and investment decisions with more confidence, encourages longer-term investment in Canada's economy, and contributes to sustained job creation and greater productivity. This, in turn, leads to improvements in our standard of living.

Canada’s monetary policy framework consists of two key components that work together: the inflation-control target and the flexible exchange rate. This framework helps make monetary policy actions readily understandable and enables the Bank to demonstrate its accountability to Canadians.

The monetary policy report is a quarterly report of the Bank of Canada’s Governing Council, presenting the Bank’s base-case projection for inflation and growth in the Canadian economy, and its assessment of risks.

If you are interested, you can find all the previous Press Release and Monetary Policy reports on the Bank of Canada website. You can check the meetings scheduled for 2018 of the world's leading Central Banks and the last Central Banks reports.

pdf, format, file, download Press Release

pdf, format, file, download Monetary Policy report

 

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