MNI BRIEF: BOC Reports CAD1.1B Loss In 2022 Annual Report

The Bank of Canada reported a CAD1.11 billion loss in 2022 in an annual report released Monday night and affirmed more red ink is coming as it unloads government bonds purchased to revive the economy from the Covid pandemic before it started raising interest rates.

The unprecedented loss follows net income of CAD2.4 billion in 2021 and required the government to introduce legislation allowing the Bank to retain future earnings until losses are made up. (See: MNI INTERVIEW: BOC's QE Losses May Dent Inflation Fight- Tombe) Senior Deputy Governor Carolyn Rogers told lawmakers last week losses may continue until 2028 or 2029 and a C.D. Howe estimate for total losses around CAD5.7 billion is reasonable.

After inflation peaked a four-decade high of 8.1%, "results from public opinion surveys conducted in 2022 show that trust in the Bank is slightly lower than it was before the pandemic due to high inflation and increased criticism. However, survey results also show that more Canadians are aware of the Bank and understand its role in the economy," the Bank's report said.