The Bank of Canada is anticipated to announce one other hefty hike of its key rate of interest on Wednesday morning, persevering with one of the quickest financial coverage tightening cycles in its historical past, regardless of the rising warning indicators of a potential recession.
Here’s how we got here:
Oct. 24, 2018: The Bank of Canada’s key rate of interest reached 1.75 per cent after steadily rising because the 2015 oil value crash that rippled by way of the Canadian economic system. That fee remained unchanged all through 2019.
March 4, 2020: The Bank of Canada reduce its key rate of interest by half a share level to 1.25 per cent amid financial considerations stemming from COVID-19, simply days earlier than the World Health Organization declared a world pandemic.
March 13, 2020: The Bank of Canada introduced that it could decrease its in a single day fee goal by one other half share level to 0.75 per cent, efficient March 16, in a uncommon unscheduled announcement. At the time, the central financial institution referred to as the choice a “proactive measure” in response to the pandemic worsening, in addition to the numerous drop in oil costs.
March 27, 2020: The Bank of Canada lowered its key rate of interest to 0.25 per cent, a report low, and launched a quantitative easing program (or authorities bond-buying program) to additional stimulate the economic system as COVID-19 continued to unfold world wide.
Oct. 27, 2021: With the economic system exhibiting indicators of new life and COVID-19 restrictions lifting, the Bank of Canada introduced it was ending its quantitative easing program.
March 2, 2022: After preserving its key rate of interest at 0.25 per cent for 2 years, the Bank of Canada raised it to 0.50 per cent. This got here amid stubbornly excessive inflation and an more and more unstable world financial panorama pushed by Russia’s invasion of Ukraine.
April 13, 2022: The Bank of Canada additional hiked its key rate of interest by half a share level to one per cent. The final time the central financial institution raised the in a single day goal fee by half a share level moderately than a quarter was in May 2000.
June 1, 2022: At the beginning of this summer time, The Bank of Canada raised its key rate of interest by one other half of a share level to 1.5 per cent — the quickest year-over-year rise in additional than three many years, to rein in a larger than anticipated inflation fee of 6.8 per cent.
July 13, 2022: As projected, one other hike got here later in the summertime because the Bank of Canada raised its key rate of interest by a full share level, marking the most important single fee hike since August 1998.
Sept. 7, 2022: For the fifth consecutive hike this yr, the Bank of Canada rose its key rate of interest to 0.75 per cent, to a complete of 3.25 per cent — the best key fee since May 2008. After the hike, in an Oct. 6 speech, Bank of Canada governor Tiff Macklem mentioned there is extra to be carried out.
Oct. 26, 2022: The Bank of Canada is set to announce its newest rate of interest determination. It is broadly anticipated to raise its key rate of interest goal, however forecasters differ on how huge of a rise it will likely be.
This report by The Canadian Press was first revealed Oct. 26, 2022