Opinion: Should the Bank of Canadas interest rates go any lower?

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Last week the Bank of Canada decided not to change its target for the “overnight rate” of interest at which lending takes place among large financial institutions. It was a non-move that had extra significance in light of recent speeches by members of the bank’s Governing Council. Statements by Gov. Tiff Macklem and Deputy Gov. Paul Beaudry before Christmas had led to speculation about the possibility of a “micro-cut,” a cut in the target overnight rate of less than 25 basis points, if weak economic conditions warranted such a move. With the bank now predicting negative economic growth this quarter, such a cut might have seemed justified.

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Original Article Source Credits:   Financial Post , https://financialpost.com/

Article Written By:  NA

Original Article Posted on:  January 29, 2021 

Link to Original Article:  https://financialpost.com/opinion/opinion-should-the-bank-of-canadas-interest-rates-go-any-lower