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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
MNI BOC Review - July 2021: Full Recovery -- Not There Yet
Executive Summary
As expected, the Bank of Canada held it's policy rate steady at the lower bound of 0.25% (bank rate at 0.5, deposit rate at 0.25) Wednesday, while tapering weekly bond purchases by CAD1 billion to CAD2 billion a week.
The Bank reiterated their commitment "to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. Based on our current projection, this happens sometime in the second half of 2022."
Source: BOC MPR
The tapering of weekly bond purchases down to CAD2 billion a week reflects the Bank's "increased confidence in the strength of the Canadian economic outlook" and "continued progress towards recovery."
- "Decisions regarding further adjustments to the pace of net bond purchases will be guided by the Governing Council's ongoing assessment of the strength and durability of the recovery. If the economy evolves broadly in line with our outlook, then over time it won't need as much QE. Further adjustments to our QE program will continue to be gradual, and we will be deliberate both in our assessment of incoming data and in the communication of our analysis. We will continue to provide the appropriate degree of monetary policy stimulus to support the recovery and achieve the inflation objective."
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.