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Email this1:01 pm
December 12, 2009
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Ostensibly owing to the fact that the majority of the Bank of Canada's balance sheet assets are low yielding Government of Canada bonds and the deposits Canadian banks and government institutions have with it are earning at least its Policy Interest Rate (3.75% currently), the Bank of Canada governor said recently in parliamentary testimony, it expects to report a significant net loss in its current fiscal year, and that it further expects to report annual losses for the "foreseeable future." The interesting thing, though, is the Bank of Canada has reportedly never had a net loss, before now anyway.
Of course, the Bank of Canada can control its own destiny, so to speak, and could always buy up higher yielding bonds and produce a profit, but doing so would be stimulative and inflationary, so the net losses are one unfortunate side effect of what needs to happen.
Cheers,
Doug
1:52 pm
September 7, 2018
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I think most of us knew that the Bank of Canada appears to have less than stellar management - we know that the BoC delayed far too long in raising rates to cool inflation and we will pay the price for a while. Disappointing to hear that this is the first time in history the BoC will report annual losses.
2:20 pm
December 12, 2009
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canadian.100 said
I think most of us knew that the Bank of Canada appears to have less than stellar management - we know that the BoC delayed far too long in raising rates to cool inflation and we will pay the price for a while. Disappointing to hear that this is the first time in history the BoC will report annual losses.
I agree they likely were asleep at the switch for too long, but in this case, I'd be more concerned with incompetent BoC management if they actually adjusted monetary policy to produce a profit for the central bank. 🙂
Losses at the BoC are just that—paper losses, except with real money, but since they print the real money and the real money isn't tied to anything of real, tangible value, they have the ability to define its value. 
Cheers,
Doug
4:04 pm
March 8, 2022
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canadian.100 said
we know that the BoC delayed far too long in raising rates to cool inflation and we will pay the price for a while. Disappointing to hear that this is the first time in history the BoC will report annual losses.
I totally AGREE. What's happening now is just commom sense and grade 3 arithmetic. How can anyone be surprised by that?
5:36 pm
September 11, 2013
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If you want to change people's behaviour (e.g. re house prices) then some "pain" is required for a period of time, otherwise back to party time right away. So I figure that's part of the plan, BoC people are just stupider than people here is not a plausible argument (to me). Also supply chain issues are persistent and not resolving as straight-line as had been expected after virus, plus no solution in sight for labour shortages in virtually every area of economy, thus higher inflation winds will persist.
6:26 pm
January 12, 2019
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canadian.100 said
I think most of us knew that the Bank of Canada appears to have less than stellar management - we know that the BoC delayed far too long in raising rates to cool inflation and we will pay the price for a while. . . .
So please tell us, Oh 'Wise One' . . .
- Given that this recent period of inflation is Not just a Canadian problem ...
it's Global, which "Bank of ???" got it right ❓
.
We will Respectfully & Patiently await your answer.
'Namaste' 
- Dean
" Live Long, Healthy ... And Prosper! "
7:26 pm
September 7, 2018
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Dean said
So please tell us, Oh 'Wise One' . . .
Given that this recent period of inflation is Not just a Canadian problem ...
it's Global, which "Bank of ???" got it right ❓.
We will Respectfully & Patiently await your answer.'Namaste'
Dean
Japan had an annual rate of inflation of around 3.7% for October 2022.
France and Italy also had lower inflation rates than Canada's 6.8%.
Yes inflation is a world problem but some countries are doing better than Canada.
5:35 am
March 30, 2017
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Whether BoC runs profit or loss is irrelevant. That money gets remitted to / from the Treasury every year any way. If the BoC ‘s pay is tied to performance and is evaluated like a hedge fund with a high water mark, maybe they will do a better job
6:12 am
September 11, 2013
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More than central banks that impact inflation. For example, Japan sits atop global economic complexity index, both France and Italy comfortably ahead of Canada, i.e. we make virtually nothing here, heavy importers more affected by global inflation. Just an example, there are many other factors. And Canada is doing quite well, inflation-wise, compared to some other countries that are similarly under-developed.
10:07 am
January 12, 2019
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Dean said
So please tell us, Oh 'Wise One' . . .
Given that this recent period of inflation is Not just a Canadian problem ...
it's Global, which "Bank of ???" got it right ❓.
We will Respectfully & Patiently await your answer.'Namaste'
Dean
canadian.100 said
Japan had an annual rate of inflation of around 3.7% for October 2022.
France and Italy also had lower inflation rates than Canada's 6.8%.
Yes inflation is a world problem but some countries are doing better than Canada.
You're Cheery-Picking ⬆, Oh 'Wise One' . . .
As one of Many examples, much of the G20 have done a Whole Lot Worse than Canada ➡ { https://www.ctvnews.ca/business/how-canada-s-inflation-compares-with-other-g20-nations-1.6157203 } ... and that's just the G20 ❗
- Dean
" Live Long, Healthy ... And Prosper! "
11:09 am
September 7, 2018
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Dean said
canadian.100 said
Japan had an annual rate of inflation of around 3.7% for October 2022.
France and Italy also had lower inflation rates than Canada's 6.8%.
Yes inflation is a world problem but some countries are doing better than Canada.You're Cheery-Picking ⬆, Oh 'Wise One' . . .
As one of Many examples, much of the G20 have done a Whole Lot Worse than Canada ➡ { https://www.ctvnews.ca/business/how-canada-s-inflation-compares-with-other-g20-nations-1.6157203 } ... and that's just the G20 ❗
Dean
My original point was that the BoC was late in starting to raise interest rates - there is (whether you agree or not) much agreement on that. You can express your opinion without going into such a rant.
12:30 pm
March 30, 2017
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canadian.100 said
You're Cheery-Picking ⬆, Oh 'Wise One' . . .
As one of Many examples, much of the G20 have done a Whole Lot Worse than Canada ➡ { https://www.ctvnews.ca/business/how-canada-s-inflation-compares-with-other-g20-nations-1.6157203 } ... and that's just the G20 ❗
Dean
My original point was that the BoC was late in starting to raise interest rates - there is (whether you agree or not) much agreement on that. You can express your opinion without going into such a rant.
In BoC's defence, they are not the only one thats "late". Pretty much every single CB failed the exam.
9:37 am
January 12, 2019
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savemoresaveoften said
In BoC's defence, they are not the only one thats "late". Pretty much every single CB failed the exam.
- That ⬆
The study & practice of Economics (Macro & Micro) is far from being an exact science. The CBs of the world can only make 'Educated Guesses' of what's going to happen next. To expect them to be on-the-mark all the time, is quite Naive.
It's very similar to the game of horseshoes, or the throwing of hand grenades. You just cross your fingers that you're 'Close Enough'. 
- Dean
P.S.
Someone here needs to
Grow Some Bark. LOL
" Live Long, Healthy ... And Prosper! "
9:50 am
January 13, 2022
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Dean said
savemoresaveoften said
In BoC's defence, they are not the only one thats "late". Pretty much every single CB failed the exam.
That ⬆
The study & practice of Economics (Macro & Micro) is far from being an exact science. The CBs of the world can only make 'Educated Guesses' of what's going to happen next. To expect them to be on-the-mark all the time, is quite Naive.
It's very similar to the game of horseshoes, or the throwing of hand grenades. You just cross your fingers that your 'Close Enough'.
Dean
P.S.
Someone here needs to
Grow Some Bark. LOL
Someone here needs to be not quite as condescending.
10:52 am
March 4, 2019
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Others bank in the world mishandling interest rates is not a justification. They all messed up. Simple as that.
12:37 pm
September 7, 2018
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LeBronBMT said
Other banks in the world mishandling interest rates is not a justification. They all messed up. Simple as that.
I agree 100% .......and we also will pay the price.
12:54 pm
October 21, 2013
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When the problem is this pervasive ( i.e. global and systemic), I don't think it makes sense to just blame the local functionaries. I'm not especially fond of Tiff but I doubt anyone else would have done much better. They all work from the same assumptions and principles, it seems to me. We could be worse off under different management.
1:15 pm
September 11, 2013
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Tuesday afternoon, my town's roads are full of cars pulling in and out of retail places, people seem to spending as usual, not sure I see much evidence of messing up, paying the price, etc.
1:25 pm
October 21, 2013
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You're not looking in the right places.
2:28 pm
September 7, 2018
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Bill said
Tuesday afternoon, my town's roads are full of cars pulling in and out of retail places, people seem to spending as usual, not sure I see much evidence of messing up, paying the price, etc.
It is true that we are told that GDP numbers are increasing, and unemployment is at a low 5% - and there are lots of jobs available if people do want to work - so perhaps you are not mistaken - maybe things aren't really that bad.
Please write your comments in the forum.