Bank of Canada Financial News

Canadians are less enthusiastic about a Central Bank Digital Currency (CBDC) opting for traditional payment methods despite wider awareness, a new survey shows.

The Bank for International Settlements (BIS) launched its Toronto Innovation Hub on June 13, partnering with the Bank of Canada. The hub is expected to spearhead financial initiatives in Canada and extend its influence across Latin America and the Caribbean.

The Bank of Canada published a staff note on decentralized finance (DeFi) on Oct. 17, assessing the innovations that made it popular and the challenges and risks associated with its use.

A common argument made in favor of central bank digital currency (CBDC) is that it could boost financial inclusion. The nuances of how to accomplish that goal, or even what “financial inclusion” means, remain to be explored, a Bank of Canada discussion paper said. It concluded that central banks will face a range of unfamiliar and nontraditional challenges to create an inclusive CBDC. 

Bank of Canada deputy governor Nicolas Vincent says businesses are still raising their prices more frequently and by larger amounts than they did before the pandemic, which is contributing to higher-than-expected inflation.

interest rates that led to a huge spike in real estate demand to the speed with which interest rates shot up to levels not seen in a generation, it’s been hard to keep up with the shifting landscape for mortgage holders.Now, with interest rates increasingly expected to stay higher for longer, many of the homeowners who locked in low rates years ago are likely bracing themselves for financial pain as their mortgage comes up for renewal.“Each month that passes, roughly two per cent of mortgage holders face renewal at sharply higher interest rates,” Royce Mendes, managing director and head of macro strategy at Desjardins, wrote in a Sept. 19 note to clients.Borrowers with fixed rates are expected to see an average payment increase of between 14 per cent and 25 per cent next year compared with early 2022 costs, according to the Bank of Canada.

Canada’s economic growth was “essentially unchanged” in July, Statistics Canada said Friday, but there were signs growth was returning later in the third quarter.

Stubborn inflation might not warrant another interest rate hike, but could mean the Bank of Canada keeps its policy rate higher for longer, according to new forecasts released this week.

The Liberal government’s latest plan to get more rental housing built is to expand a program that helps developers secure cheaper mortgage rates as higher interest costs affect the viability of new projects.

A recent report by Rates.ca suggests variable rate mortgage holders have paid thousands more in interest since rate hikes by the Bank of Canada began.

The Bank of Canada did not want to give the impression that it was done raising interest rates — or that the cost of borrowing would soon drop — in communicating its most recent policy rate decision, documents released Wednesday show.

The annual rate of inflation picked up again in August, rising to four per cent, according to Statistics Canada.

Prospective homebuyers had “more choice” in Canada’s housing market in August as a rise in new listings met a slowdown in activity, according to the national real estate association.

Higher interest rates are putting Canadians off borrowing, Statistics Canada said Wednesday, while boosts in income are helping to offset higher debt-servicing costs.

The national unemployment rate was unchanged at 5.5 per cent in August amid a gain of 40,000 jobs, Statistics Canada said Friday.

Bank of Canada governor Tiff Macklem reaffirmed the central bank’s independence on Thursday in response to politicians weighing in on the institution’s interest rate decisions over the past week.

The head of the Bank of Canada says the central bank’s two per cent inflation target is “now in sight” but cautions that persistent price pressures might require additional interest rate hikes.

The Bank of Canada hit pause on its interest rate hiking cycle on Wednesday, leaving its policy rate unchanged at 5.0 per cent.

Canada’s housing market could face a chill this fall as prospective buyers and sellers wait to see where the Bank of Canada’s interest rate path will head, according to new polling released Tuesday.

Two premiers have sent letters to Bank of Canada governor Tiff Macklem urging the central bank to halt interest rate hikes ahead of its next rate decision Wednesday.

Doug Ford has become the second Canadian premier to formally express his displeasure with interest rate hikes, calling on the Bank of Canada to end the increases, which he says are “hurting people.”