Canada

  • 2020-03-27 09:40


    (MNI) - The following is the text of Friday's announcement from the Bank of Canada's plan to purchase commercial paper.

    In order to support the continuous functioning of financial markets, the Bank of Canada is announcing the Commercial Paper Purchase Program (CPPP). The Canadian commercial paper (CP) market is a key source of short-term financing to support the ongoing needs of a wide range of firms and public authorities. The CPPP will help support the flow of credit to the economy by alleviating strains in Canada's commercial paper markets.

    For the next 12 months, the Bank will conduct primary and secondary market purchases of CP, including asset-backed CP, issued by Canadian firms, municipalities and provincial agencies with an outstanding CP program.

  • 2020-03-27 09:37


    (MNI) - Here's the text of Bank of Canada Governor's opening statement in his press conference Friday in Ottawa after cutting rates to 0.25%.

    Good morning, and thank you for joining Senior Deputy Governor Wilkins and me to discuss today's interest rate decision. Before turning to your questions, let me briefly summarize today's announcements.

    First, we have lowered our target for the overnight rate by 50 basis points to 1/4 percent. This unscheduled rate decision brings the policy rate to its effective lower bound, to provide support to the Canadian financial system and to the economy during the COVID-19 pandemic.

    The government has announced decisive fiscal actions to defend Canadians and the economy from the damaging effects of COVID-19.

  • 2020-03-25 15:55


    --Finance Minister Plans CAD107 Bln in Spending, Deferred Taxes

    OTTAWA (MNI) - Canada's Parliament passed a COVID-19 spending plan in an emergency session Wednesday, unlocking direct aid that has now doubled to CAD52 billion and another CAD55 billion in tax deferments.

    Finance Minister Bill Morneau also reworked the headline payouts to people thrown out of their jobs, in part because the unemployment insurance system is overwhelmed by last week's record 1 million new claims.

  • 2020-03-24 14:39


    By Greg Quinn

    OTTAWA (MNI) - Here is the text of a Bank of Canada statement published Tuesday from Ottawa:

    The Bank of Canada today announced a new program to support the liquidity and efficiency of provincial government funding markets. The Provincial Money Market Purchase (PMMP) program is an asset purchase facility that will acquire provincially-issued money market securities through the primary issuance market. This program will support a liquid and well-functioning market for short-term provincial borrowing.

    Under the PMMP, the Bank will purchase up to 40 percent of each offering of directly-issued provincial money market securities with terms to maturity of 12 months or less. This includes treasury bills and short-term promissory notes of all Canadian provinces.

  • 2020-03-20 16:13


    By Greg Quinn

    OTTAWA (MNI) - Following is a statement from the Bank of Canada published Friday:

    The Bank of Canada (Bank) continues to take actions to support the efficient and continuous functioning of Canadian financial markets by ensuring that the Canadian financial system has sufficient liquidity and that financial institutions can continue to extend credit to both households and businesses. To that end, the Bank is announcing four measures today designed to support market functioning given the rapidly evolving uncertainty around the impact of COVID-19.

    First, the Bank is increasing the frequency of its Term Repo operations to at least twice a week starting Tuesday March 24, 2020.

  • 2020-03-18 12:00


    By Greg Quinn

    OTTAWA (MNI) - Following is the text of BOC Governor Stephen Poloz's opening statement at a press conference Wednesday in Ottawa:

    Canadians expect their economic policy makers to do what it takes to support them in this difficult period. The circumstances we face today require all hands on deck. Each institution is acting within its respective mandate to deliver a powerful confidence-boosting package of measures for consumers, business and financial markets. For its part, the Bank of Canada has been working hard to ensure the financial system has sufficient liquidity so that credit continues to be available to businesses and households. To recap:

    On Monday, the Bank adjusted its liquidity operations to maintain market functioning and credit availability.

  • 2020-03-18 08:49


    By Greg Quinn

    OTTAWA (MNI) - Following is a statement from Statistics Canada Wednesday on a reduced publication schedule amid the COVID-19 pandemic. It was sent to the Parliamentary Press Gallery in Ottawa:

    Impact of COVID-19 on Statistics Canada publishing activities

    In the context of the rapidly-evolving situation around the novel coronavirus (also known as COVID-19), Statistics Canada remains committed to providing Canadians with the information they need. The agency plans to continue releasing data from programs identified as 'mission-critical' to the proper functioning of the Government of Canada, and to the Canadian economy and society.

  • 2020-03-17 11:39


    By Greg Quinn

    OTTAWA (MNI) - Following is the text published Tuesday outlining the BOC's deliberations before its unscheduled 50bp interest-rate cut on March 13:

    It is customary for the Bank to provide a summary of the deliberations of Governing Council after each interest rate decision. This takes the form of an opening statement at the meetings when we publish an MPR, or a public speech the day after meetings for which there is no MPR.

    Governing Council's decision to cut interest rates on Friday, 13 March, 2020 took place in neither of these contexts.

  • 2020-03-13 14:30


    By Greg Quinn

    OTTAWA (MNI) - Here is the text of BOC Governor Stephen Poloz's statement at a press conference Friday announcing a 50bp interest-rate cut to 0.75%.

    Thank you, Minister. The Bank of Canada is contributing to this collective effort to support the Canadian economy and financial system, and to ensure credit channels remain open.

    The Bank is cutting its target for the overnight rate by 50 basis points to 0.75% of a percent.

  • 2020-03-13 10:13


    --Debt-To-Income Ratio Tracked By BOC Declines

    OTTAWA (MNI) - Canadian households devoted a record share of their income to debt repayment in the fourth quarter, another sign of the side effects of low-for-long interest rates.

    The debt-service ratio of 15% was up 0.1pp from the third quarter and the highest in Statistics Canada figures published Friday going back to 1990. The figure has climbed from 14% in mid-2017.

    Household debts have climbed to CAD2.31 trillion or 102% of GDP.