The Bank of Canada will soon be allowed to retain some of its earnings to offset financial losses, which could persist for years as the central bank raises…
The government plans to amend legislation to “allow, on a temporary basis, the Bank of Canada to retain earnings, rather than remit them to the government, for the purpose of covering losses,” Macklem told reporters in a press conference Wednesday. “We will likely have a period of couple of years of negative net income before our income reverses back to our normal positive state.”Sign up to receive daily headline news from Ottawa Citizen, a division of Postmedia Network Inc.
The Bank of Canada in 2020 joined other central banks in starting a range of bond-purchase programs to shore up financial markets as the pandemic prompted investors to dump assets. As inflation picked up in the following years, monetary policy authorities reversed some of those measures and raised interest rates. For the Bank of Canada, the about-face means it’s now paying more on settlement balances than it’s receiving on its assets.
The Bank of Canada posted a comprehensive loss of C$522 million in the three months ended Sept. 30, compared with income of C$697 million a year earlier, according to its latest quarterly results. “This is a good solution,” Macklem said of the potential legislative change. “It will give us all the tools we need.”
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Former Bank of Canada senior deputy governor to brief Trudeau cabinetJustin Trudeau and his ministers gathered in Hamilton, Ont. on Monday for a three-day cabinet retreat ahead of Parliament’s return next week
Read more »
Canadian dollar steadies as traders shirk risk ahead of Bank of Canada rate decisionCanadian dollar pulls back from 10-day high ahead of central bank’s rate decision
Read more »
Why the Bank of Canada should hike interest rates this weekJob and inflation numbers indicate a soft landing is within reach but policymakers should resist the temptation to relax restraint. Read on.
Read more »
Posthaste: What another Bank of Canada hike would mean to borrowers and the housing marketBank of Canada is expected to raise interest rates again. What does this mean to Canadian borrowers and the housing market. Find out
Read more »
Posthaste: What another Bank of Canada hike would mean to borrowers and the housing marketBank of Canada is expected to raise interest rates again. What does this mean to Canadian borrowers and the housing market. Find out
Read more »
Posthaste: What another Bank of Canada hike would mean to borrowers and the housing marketBank of Canada is expected to raise interest rates again. What does this mean to Canadian borrowers and the housing market. Find out
Read more »