| Subject: Bank of Canada--CPU--HTML link---press release 23/10 |
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anonymous
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Date Posted: 10:36:09 10/26/02 Sat
http://www.bankofcanada.ca/fixed-dates/fixedate-2003.htm
FOR IMMEDIATE RELEASE
29 August 2002 CONTACT: Pierre Laprise
(613) 782-8782
--------------------------------------------------------------------------------
Bank of Canada releases 2003 schedule of dates for policy interest rate announcements
OTTAWA – The Bank of Canada today released its 2003 schedule of eight dates for announcing decisions on its key policy interest rate and, at the same time, confirmed the announcement dates for the remainder of this year.
The schedule of announcement dates from September 2002 through December 2003 is:
Wednesday 4 September 2002
Wednesday 16 October 2002
Tuesday 3 December 2002
Tuesday 21 January 2003
Tuesday 4 March 2003
Tuesday 15 April 2003
Tuesday 3 June 2003
Tuesday 15 July 2003
Wednesday 3 September 2003
Wednesday 15 October 2003
Tuesday 2 December 2003
All announcements will continue to be made at 9 a.m. (ET).
"The Bank's fixed schedule for announcing policy interest rate decisions continues to make an important contribution to the effectiveness of Canadian monetary policy and its communication," said Bank of Canada Governor David Dodge. "As a result, we have witnessed an improvement in the debate and discussion around monetary policy issues in Canada."
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http://www.bankofcanada.ca/en/press/pr02-16.htm
FOR IMMEDIATE RELEASE
23 October 2002 CONTACT: Pierre Laprise
(613) 782-8782
--------------------------------------------------------------------------------
http://www.stockhouse.com.au/bullboards/viewmessage.asp?no=5037029%20%20&tableid=2
Bank of Canada releases its October Monetary Policy Report
OTTAWA — Today, the Bank of Canada released its October Monetary Policy Report, in which it discusses economic and financial trends in the context of Canada's inflation-control strategy.
The Canadian economy has been expanding strongly so far this year and is now operating fairly close to its full production capacity. Consumer price inflation has risen above the 2 per cent target and is expected to rise further before year-end because of high oil prices and a number of other relative price movements. What is important for monetary policy is that these one-off influences on specific prices not feed more generally into price and wage inflation.
The Canadian economy has grown more rapidly than those of all other G-7 countries over the past year. Annualized growth exceeded 5 per cent in the first half of 2002—well above the growth of the economy's potential. We estimate that Canada's economy grew at an annualized rate of about 4 per cent in the third quarter. Thus, there has been a significant reduction in the amount of excess supply in the economy so far this year.
Looking ahead, global economic, financial, and geopolitical uncertainties are likely to moderate the rate of Canada's economic growth over the next three quarters. Growth should come in at the bottom of, or slightly below, the 3 to 4 per cent range that we anticipated in the last Update.
The output gap is very small. Assuming the uncertainties now clouding the outlook dissipate in the second half of next year, we expect growth to accelerate to above potential at that time, absorbing the remaining small amount of excess supply.
The Bank's core measure of inflation is running above our earlier projections. This largely reflects sharp increases in home and auto insurance premiums and, in Ontario, electricity prices. Core inflation is also being pushed up by strong demand for housing.
All told, core inflation is expected to peak at about 3 per cent by the end of this year. But, as the one-time influences fade, core inflation is expected to decline in the second half of 2003, provided those one-time factors do not feed into price and wage inflation more generally.
The Canadian economy is now operating not far from its capacity. In order to sustain non-inflationary growth, we will need to continue to remove monetary stimulus before the excess supply in the economy is completely absorbed. The pace and extent of this action will depend on the balance of domestic and external developments and on their implications for pressures on capacity and inflation in Canada.
See also: Monetary Policy Report and Summary
http://www.stockhouse.com.au/bullboards/viewmessage.asp?no=5493719&tableid=1
It was stated in the slide presentation that the effect of an 0.5% increase in global interest rates added 12 million dollars net profit to CPU. (this is unhedged)
However what the entity is doing is hedging and they have done this to the tune of 60 to 70%---it was stated that they saw this as being appropiate and prudent action to take for the medium to longer term.
Therefore it follows an 0.5% rise--would work out something like below.
12 million times 70% equals 8.4-----12 minus 8.4 equals 3.6 million.
In summary.
A 0.5% increase in interest rates globally (and it varies---CPU with their calculations are taking a median average in their planning)
would add approximately 3.6 million to CPU's net profit.
----------------------------------------------------------------------
http://www.bankofcanada.ca/en/press/pr02-16.htm
FOR IMMEDIATE RELEASE
23 October 2002 CONTACT: Pierre Laprise
(613) 782-8782
--------------------------------------------------------------------------------
Bank of Canada releases its October Monetary Policy Report
OTTAWA — Today, the Bank of Canada released its October Monetary Policy Report, in which it discusses economic and financial trends in the context of Canada's inflation-control strategy.
The Canadian economy has been expanding strongly so far this year and is now operating fairly close to its full production capacity. Consumer price inflation has risen above the 2 per cent target and is expected to rise further before year-end because of high oil prices and a number of other relative price movements. What is important for monetary policy is that these one-off influences on specific prices not feed more generally into price and wage inflation.
The Canadian economy has grown more rapidly than those of all other G-7 countries over the past year. Annualized growth exceeded 5 per cent in the first half of 2002—well above the growth of the economy's potential. We estimate that Canada's economy grew at an annualized rate of about 4 per cent in the third quarter. Thus, there has been a significant reduction in the amount of excess supply in the economy so far this year.
Looking ahead, global economic, financial, and geopolitical uncertainties are likely to moderate the rate of Canada's economic growth over the next three quarters. Growth should come in at the bottom of, or slightly below, the 3 to 4 per cent range that we anticipated in the last Update.
The output gap is very small. Assuming the uncertainties now clouding the outlook dissipate in the second half of next year, we expect growth to accelerate to above potential at that time, absorbing the remaining small amount of excess supply.
The Bank's core measure of inflation is running above our earlier projections. This largely reflects sharp increases in home and auto insurance premiums and, in Ontario, electricity prices. Core inflation is also being pushed up by strong demand for housing.
All told, core inflation is expected to peak at about 3 per cent by the end of this year. But, as the one-time influences fade, core inflation is expected to decline in the second half of 2003, provided those one-time factors do not feed into price and wage inflation more generally.
The Canadian economy is now operating not far from its capacity. In order to sustain non-inflationary growth, we will need to continue to remove monetary stimulus before the excess supply in the economy is completely absorbed. The pace and extent of this action will depend on the balance of domestic and external developments and on their implications for pressures on capacity and inflation in Canada.
See also: Monetary Policy Report and Summary
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