Senior Deputy Governor Carolyn Wilkins discusses key issues involved in the Governing Council’s deliberations about the policy rate decision and the MPR.
Decomposing total inflation in Canada as measured by the consumer price index (CPI) into its key macroeconomic factors, as presented in the most recent Monetary Policy Report, is an interesting exercise that shows how the exchange rate pass-through, commodity prices and the output gap have influenced the evolution of the total inflation rate over time. This aggregate approach, however, may mask important sectoral changes.
The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.
In this note, we provide a brief outline of the recent developments in wage measures in Canada. We then assess whether wage growth is consistent with its fundamentals.
The summer Business Outlook Survey indicates that overall business sentiment is subdued. The boost from foreign demand remains insufficient to outweigh the continued drag from commodity-related activity combined with modest domestic demand.
Survey results suggest that overall business-lending conditions continued to tighten during the second quarter of 2016 for both price and non-price conditions.