Tag: Bank of Canada

Posthaste: The Canadian dollar is getting hammered — and its future looks even bleaker | Financial Post

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So what’s up with the Canadian dollar? While many thought the currency would strengthen in 2023, the loonie has slid to depths not seen since the height of the pandemic. (This morning it was trading near a 6-month low of 72.43 US cents) A big part of this mystery is that the drivers of the currency have changed. When a hawkish Bank of Canada was raising interest rates it supported the loonie, but now that the slowing economy has reduced the risk of more hikes, new drivers are taking over.…

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Federal Documents Hint At Sweeping Economic Impact From Central Bank ‘Digital Loonie’ | CTV News

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OTTAWA – Internal government documents show Finance Department officials believe there could be sweeping implications for the economy if the Bank of Canada ever issued its own cryptocurrency.The Bank of Canada has spent years looking at whether to introduce a digital currency, but so far hasn’t seen an immediate need to issue one. In one briefing note from last January, officials warned Finance Minister Chrystia Freeland that the issuance of a central bank digital currency would entail “wide-reaching implications for the economy, the financial system” and the Bank of Canada’s…

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Some Paper Bills Will No Longer Be Legal Tender In Canada | CTV News

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The Bank of Canada says it is removing the legal tender status from a series of older bills. For the first time, the Bank of Canada will be removing the legal tender status of five older bank notes. The bills haven’t been produced in decades and removing their legal tender status is the “final step to remove them as transaction notes” says Bank of Canada spokesperson Amelie Ferron-Craig. Read full story here: Some Paper Bills Will No Longer Be Legal Tender In Canada | CTV News

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Canadian Dollar Hits 4-week Low As Investors See End To Bank Of Canada’s Hiking Bias | The Globe and Mail

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The Canadian dollar weakened to a nearly four-week low against its U.S. counterpart on Tuesday as the greenback climbed broadly and investors bet that the Bank of Canada would forgo language pointing to further interest rate hikes. Canada’s central bank is expected to hold its benchmark interest rate steady at 1.75 per cent on Wednesday and for the rest of this year, with calls for the next hike in early 2020 resting on a knife’s edge, a Reuters poll showed. Read full story here: Canadian Dollar Hits 4-week Low As…

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Canadian Borrowers Will Feel This Week’s U.S. Interest Rate Hike: Don Pittis | CBC News

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Markets are so certain that U.S. Federal Reserve chair Jerome Powell will raise rates this week that a failure to hike would likely have worse consequences for American markets than the impact of higher borrowing costs. But the near certainty so cherished by market traders — who hate rude surprises — will provide little reassurance for the millions of people around the world, including over-borrowed Canadians, who will inevitably feel the effects of higher rates. And not only are market indicators showing a 100 percent expectation of a rate hike on Wednesday, most analysts expect another increase in December,…

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Budget Says Some Paper Currency Will No Longer Be Legal Tender – Politics – CBC News

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The Liberal government announced Tuesday — in an item buried deep in its 367-page 2018 budget document — that some paper currency will no longer be accepted as legal tender. The $1000 bank note will no longer be legal tender, pending the introduction of legislative changes. The Bank of Canada will still accept the bills for an exchange. (Bank of Canada) While the Bank of Canada stopped printing the $1,000 note in 2000, there are still about 700,000 of those bills still in circulation across the country. As part of a plan…

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Big Banks Hike Prime Rates After Bank Of Canada Tightens Monetary Policy – Business – CBC News

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In the wake of the Bank of Canada’s move Wednesday to boost a key interest rate, Canada’s big banks have boosted their prime rates. RBC was first off the mark, followed quickly by the others, raising their prime rates to 3.2 per cent from 2.95 per cent, where they had been since the central bank’s last rate increase in July. Canadian consumers can expect to feel some financial effects following the Bank of Canada’s decision. “It’s going to raise borrowing costs a little bit for everyone,” Eric Lascelles, chief economist at RBC Global Asset Management, told…

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Mortgages Won’t Be Only Problem For Many Canadians As Rates Rise – Business – CBC News

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With the Bank of Canada set to raise lending rates, mortgage holders have been warned to expect more expensive debt than they’ve become used to. But other forms of debt are even more vulnerable to the tiny rate hikes to come. Traders are about 90 per cent certain of a rate hike at 10 a.m. ET Wednesday, with the bank’s benchmark rate expected to inch up to 0.75 per cent from 0.50 per cent. And a major impact of that move is likely to be felt entirely outside the mortgage market.…

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