04:53:41 EDT Mon 20 Sep 2021
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
Bank of Montreal
Symbol BMO
Shares Issued 647,470,963
Close 2021-07-19 C$ 122.37
Recent Sedar Documents

Globe says BMO, rivals hear rate hike timing may change

2021-07-19 08:34 ET - In the News

Also In the News (C-BNS) Bank of Nova Scotia
Also In the News (C-CM) Canadian Imperial Bank of Commerce (CIBC)
Also In the News (C-NA) National Bank of Canada
Also In the News (C-RY) Royal Bank of Canada
Also In the News (C-TD) Toronto-Dominion Bank

The Globe and Mail reports in its Monday, July 19, edition that on Wednesday, the Bank of Canada left its target for the overnight rate at 25 basis points while scaling back its quantitative easing program. The Globe's guest columnists Steve Ambler and Jeremy Kronick write that lifting its foot off the QE pedal is warranted given recent inflation readings and other underlying metrics. At the same time, however, the unchanged overnight rate target actually represents an easing of monetary policy since the bank's last announcement six weeks ago, because inflation expectations have increased, and the recovering economy has probably raised the level of the overnight rate that would be consistent with steady growth and 2-per-cent inflation. With the bank's policy rate at its effective lower bound, higher inflation expectations combined with a higher neutral rate suggests policy is more stimulative than it was six weeks ago. Further tightening is likely required, which can be accomplished through further reductions in bond purchases as a first step. Eventually, it could mean bringing forward the timing for rate hikes, which Wednesday's announcement suggested would not happen until the second half of 2022.

© 2021 Canjex Publishing Ltd. All rights reserved.