The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.
The summer Business Outlook Survey points to a diverging outlook across regions. While there are some encouraging signs, owing in part to strengthening U.S. demand, weak oil prices continue to significantly dampen economic perspectives in affected sectors and regions.
As part of an exercise to test the operational readiness of existing standing swap arrangements with other central banks, the Bank of Canada will conduct a small-value Canadian-dollar operation with the Bank of England, drawing British pounds against Canadian dollars.
This monthly newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website.