Bank of Canada rate hikes and policy moves
2022.07.13 18:01
FILE PHOTO: A Canadian dollar coin, commonly known as the “Loonie”, is pictured in this illustration picture taken in Toronto January 23, 2015. REUTERS/Mark Blinch
OTTAWA (Reuters) – The Bank of Canada hiked its policy rate to 2.5% on Wednesday from 1.5%, a surprise 100-basis-point move and its largest increase since August 1998. Here is a timeline of policy moves by the central bank, with the most recent first:
July 13, 2022 – The Bank of Canada raises its overnight interest rate by 100 basis points to 2.5% from 1.5%, a larger than expected hike, and says it now sees inflation averaging around 8% over the middle quarters of 2022.
June 1, 2022 – The Bank of Canada raises its overnight rate by 50 basis points to 1.5%, as expected, as says it will act “more forcefully if needed” to bring inflation back to target.
April 13, 2022 – The Bank of Canada raises its overnight interest rate by 50 basis points to 1.0%, as expected, and says it now sees inflation averaging 6% in the first half of this year. The bank also says it will begin quantitative tightening, effective April 25.
March 2, 2022 – The Bank of Canada raises its overnight interest rate to 0.5% from a record low 0.25%, as expected, and says rates would need to go higher despite increased uncertainty following Russia’s invasion of Ukraine. The bank also says it will continue with the reinvestment phase of its bond buying program.
Jan. 26, 2022 – The Bank of Canada ends its forward guidance, a commitment to keep interest rates low, and warns interest rates need to go up.
Oct. 27, 2021 – The Bank of Canada says it has exited quantitative easing and entered the reinvestment phase. It will purchase Government of Canada bonds only to replace maturing bonds, expected to be about C$1 billion ($795.6 million) a week.
July 14, 2021 – The Bank of Canada adjusts its quantitative easing program to a target pace of C$2 billion a week.
April 27, 2021 – The Bank of Canada adjusts its quantitative easing program to a target pace of C$3 billion a week.
Oct. 28, 2020 – The Bank of Canada adjusts its quantitative easing program to a target pace of C$4 billion a week, shifting purchases towards longer-term bonds.
March 27, 2020 – The Bank of Canada cuts its overnight interest rate by 50 basis points to record low 0.25% and commits to purchasing at least C$5 billion a week of Government of Canada bonds. This is its first-ever quantitative easing program.
March 13, 2020 – The Bank of Canada cuts its overnight interest rate by 50 basis points to 0.75%.
March 11, 2020 – The World Health Organization declares COVID-19 a global pandemic.
March 4, 2020 – The Bank of Canada cut its overnight interest rate by 50 basis points to 1.25% as COVID-19 cases spike across the globe.
Oct. 24, 2018 – The Bank of Canada hikes its overnight interest rate to 1.75%.
($1 = 1.2569 Canadian dollars)
