News

When I appeared before you last April, there was still a high degree of uncertainty in the global economy related to the 1997-98 financial crisis in emerging markets and the associated fall in world commodity prices.

The Bank of Canada raised its Bank Rate today by ¼ of one percentage point to 5½ per cent. The operating band for the overnight rate was correspondingly increased, and the Bank’s target for the overnight rate is now 5¼ per cent.

Both in Canada and elsewhere, much ink has been spilled over the past year on the pros and cons of different exchange rate regimes and the implications for monetary policy.

In a speech today to the Canadian Society of New York, Bank of Canada Governor Gordon Thiessen talked about Canada’s experience with a floating exchange rate and an independent monetary policy, despite close integration with the much larger U.S. economy.

To add to its presence in financial markets, the Bank of Canada has announced appointments to two new senior positions. Appointed are H. Ross MacKinnon as Director, Toronto Division and Jean-Pierre Aubry as Director, Montréal Division, both in the Financial Markets Department. In their new positions, Mr. MacKinnon and Mr. Aubry will contribute to the […]