News

The Bank of Canada today released its Update to the October Monetary Policy Report. This report discusses economic and financial trends in the context of Canada's inflation-control strategy.

Three developments have led us to modify our outlook for economic growth and inflation in Canada, since our October Monetary Policy Report. These include: stronger-than-expected world economic activity, the continued sharp depreciation of the U.S. dollar against major world currencies (including the Canadian dollar), and a somewhat larger output gap in Canada at the end of 2003.

Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 2 1/2 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 2 3/4 per cent.

The Bank of Canada today announced the appointment of Pierre Godin to the position of adviser. The appointment is for an 18-month period; Mr. Godin will be joining the Bank in mid-March.

Canada’s new $100 bank note will be unveiled on Wednesday, 28 January 2004, in Halifax. The first high denomination note in the Canadian Journey series will be unveiled by the Honourable John Efford, Minister of Natural Resources Canada, and David Dodge, Governor of the Bank of Canada.