CA Overnight Rate
It's an important driver of commodity demand - lower interest rates decrease carrying costs. Reduced costs to store goods will spur companies to make investments in raw materials, leading to higher inventory levels;
The rate decision is usually priced into the market, so it tends to be overshadowed by the BOC Rate Statement, which is focused on the future;
- CA Overnight Rate Graph
- History
Expected Impact / Date | Actual | Forecast | Previous |
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Jun 5, 2024 | 4.75% | 4.75% | 5.00% |
Apr 10, 2024 | 5.00% | 5.00% | 5.00% |
Mar 6, 2024 | 5.00% | 5.00% | 5.00% |
Jan 24, 2024 | 5.00% | 5.00% | 5.00% |
Dec 6, 2023 | 5.00% | 5.00% | 5.00% |
Oct 25, 2023 | 5.00% | 5.00% | 5.00% |
Sep 6, 2023 | 5.00% | 5.00% | 5.00% |
Jul 12, 2023 | 5.00% | 5.00% | 4.75% |
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- CA Overnight Rate News
- From heraeus.com|Jun 10, 2024
On 6 June, the European Central Bank (ECB) implemented its first rate cut in five years, reducing the interest rate by 25 basis points to 3.75%, despite higher-than-expected inflation figures from May. This move followed a similar rate cut by the Bank of Canada which reduced its interest rate by 25 basis points just a day earlier. These cuts reflect Western central banks’ shifting priorities to supporting economic growth rather than cracking down on inflation. The euro:dollar exchange rate held up despite the ECB’s rate cut, but the ...
- From ca.finance.yahoo.com|Jun 6, 2024
The Bank of Canada marked a major turning point in its fight against inflation on Wednesday as it lowered its key interest rate for the first time in more than four years, making it the first central bank in the G7 to cut rates. Governor Tiff Macklem said the central bank has more confidence inflation is moving closer to its 2% target, citing various indicators that suggest price pressures have retreated. “If inflation continues to ease, and our confidence that inflation is headed sustainably to the 2% target continues to increase, ...
- From scotiabank.com|Jun 5, 2024
The Bank of Canada cut the overnight rate by 25bps to 4.75%. Markets responded as shown in charts 1–3 by driving the Canada 5-year yield even lower to 3.42%, further emboldening the rally from 3.8% just a week ago while driving the 2-year yield well under 4% for about a 40bps rally over the past week. Variable and fixed rate mortgage rates are going to be cut on the back of this which should add strength to the ongoing Spring housing market. The Canadian dollar depreciated by a third of a cent to the USD on a combination of the BoC ...
- From bankofcanada.ca|Jun 5, 2024|2 comments
The Bank of Canada today reduced its target for the overnight rate to 4¾%, with the Bank Rate at 5% and the deposit rate at 4¾%. The Bank is continuing its policy of balance sheet normalization. The global economy grew by about 3% in the first quarter of 2024, broadly in line with the Bank’s April Monetary Policy Report (MPR) projection. In the United States, the economy expanded more slowly than was expected, as weakness in exports and inventories weighed on activity. Growth in private domestic demand remained strong but eased. In the euro area, activity picked up in the first quarter of 2024. China’s economy was also stronger in the first quarter, buoyed by exports and industrial production, although domestic demand remained weak. Inflation in most advanced economies continues to ease, although progress towards price stability is bumpy and is proceeding at different speeds across regions. Oil prices have averaged close to the MPR assumptions, and financial conditions are little changed since April. In Canada, economic growth resumed in the first quarter of 2024 after stalling in the second half of last year. At 1.7%, first-quarter GDP growt post: Bank of Canada: "With continued evidence that underlying inflation is easing, ... monetary policy no longer needs to be as restrictive." "Recent data has increased our confidence that inflation will continue to move towards the 2% target." post:
BOC'S GOV. MACKLEM: IT IS REASONABLE TO EXPECT MORE RATE CUTS IF INFLATION CONTINUES TO EASE. post: BOC'S GOV. MACKLEM: WE ARE TAKING OUR RATE DECISIONS ONE MEETING AT A TIME.Bank of Canada Rate Cut: How It Alters The Housing Market It happened. The Bank of Canada finally lowered its overnight rate. It was a characteristically cautious reduction — 5% to 4.75% — but as the Bank’s first rate cut in over four years, it brings with it a certain sense of cloud-parting. “With continued evidence that underlying inflation is easing, Governing Council agreed that monetary policy no longer needs to be as restrictive and reduced the policy interest rate by 25 basis points,” the Bank of Canada stated in a press release. A lower overnight rate means most lenders will be rolling out slightly lower prime rates in the next 24 hours. Expect softer variable rates on personal loans, certain credit cards and the two-trillion-dollar elephant in the room, mortgages. What will a modest reduction in variable rates mean for the housing market? We won’t really know until there’s a few months’ worth of data to chew on, but here are the likeliest scenarios.
- From fxstreet.com|Jun 5, 2024|1 comment
There is universal anticipation that the Bank of Canada (BoC) will reduce its policy rate by 25 bps at its upcoming gathering on Wednesday, June 5. It will be the first rate cut after six consecutive meetings of keeping rates unchanged at 5.00%. Since the start of the year, the Canadian Dollar (CAD) has been gradually depreciating against its US counterpart (USD), though it has mostly been in a broader consolidation phase for the last couple of months. In April, annual domestic inflation tracked by the headline Consumer Price Index ...
- From sharecafe.com.au|Jun 2, 2024
Two interest rate moves are up for decision this week, US jobs data for May, Chinese trade data (also for May), and Australian economic growth for the first quarter. Additionally, the start-of-the-month surveys of global manufacturing are underway. China’s official survey showed a surprise dip in manufacturing and service sector activity on Friday. The Bank of Canada (Wednesday) and European Central Bank (Thursday) are expected to initiate their rate-cutting cycles this week, with both expected to trim their key policy rates by 0.25% ...
- From scotiabank.com|Jun 1, 2024
Major developments beckon this week that could inform broad global and regional macro risks. To date, none of the world’s most powerful central banks have begun easing policy. Several central banks have already been cutting and for some time across places such as Latin America, Switzerland, and Sweden, but this week might kick it up a few notches with the ECB most likely to lead the charge. The Bank of Canada’s decision is much more uncertain. It could go either way. I’ve laid out the case for going now, the case for waiting, and ...
- From think.ing.com|May 29, 2024
Out of 26 banks surveyed by Bloomberg there are 16 going for a 25bp rate cut by the Bank of Canada on 5 June, versus 10 favouring the BoC keeping the overnight lending rate at 5%. Markets are seeing a similar balance of probabilities with around a two-in-three chance of a 25bp rate cut currently priced. The data is seemingly arguing in favour of a move and we think, given the BoC’s history of being prepared to make bold calls, that it will narrowly opt for a 25bp cut. The caveat is that BoC officials haven’t been especially vocal on ...
Released on Jun 5, 2024 |
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