Bank of Canada Governor Stephen Poloz explained the Bank's overnight rate cut of a quarter per cent to 3/4 per cent during a press conference Wednesday, January 21, 2015.
Photo Credit: Bank of Canada

Reacting to dropping oil prices, Bank of Canada cuts overnight rate to 3/4 per cent

Calling it “policy insurance” the Governor of the Bank of Canada Stephen Poloz announced an overnight rate decrease of a quarter per cent to 3/4 per cent Wednesday (January 21)..

In explaining the decision, Poloz pointed to the impact of falling oil prices: “The drop in oil prices is unambiguously negative for the Canadian economy. Canada’s income from oil exports will be reduced, and investment and employment in the energy sector are already being cut….Today’s action is intended to reduce the risk that our inflation path might move materially to the downside…”

RCI’s Wojtek Gwiazda has a report.


More information:
Bank of Canada Governor Stephen Poloz opening remarks (text) – here
Bank of Canada – Monetary Policy Report: January 2015 – here
CBC News – Bank of Canada shocks markets with cut in key interest rate – here
Globe and Mail – Bank of Canada shocks market with rate cut – here

Bank of Canada video of press conference below:

Categories: Economy, International
Tags: ,

Do you want to report an error or a typo? Click here!

For reasons beyond our control, and for an undetermined period of time, our comment section is now closed. However, our social networks remain open to your contributions.