The Bank of Canada LOSING Money for the First Time in History

#BankofCanada #CanadianEconomy #interestrates

Bank of Canada Governor Tiff Macklem confirmed on Wednesday that the Bank of Canada is losing money for the first time in its history, as the negative effects of Quantitative Easing become more readily apparent.

While the Bank of Canada engaged in a massive bond-buying program in 2020-2021, using settlement balances to pay for said bonds, it now has to pay interest on those funds which are still held at the Bank – interest which is variable.

Meanwhile, the government bonds held by the Bank of Canada hold a very low yield, a very low rate of return.

Links:

The Bank of Canada, for the first time in history, is losing money. Is that a problem?:

https://www.thestar.com/politics/political-opinion/2022/09/12/the-bank-of-canada-for-the-first-time-in-history-is-losing-money-is-that-a-problem.html

Tiff Macklem acknowledges the Bank of Canada is losing money for first time:

https://ca.finance.yahoo.com/news/tiff-macklem-acknowledges-bank-canada-123144627.html

Tiff Macklem acknowledges the Bank of Canada is losing money for first time:

https://financialpost.com/news/economy/bank-of-canada-losing-money-first-time-rising-rates

Opening Statement before the House of Commons Standing Committee on Finance:

https://www.bankofcanada.ca/2022/11/opening-statement-231122/

Bank of Canada expected to buy $200-billion of debt as it embraces quantitative easing:

https://www.theglobeandmail.com/business/article-bank-of-canada-expected-to-buy-200-billion-of-debt-as-it-embraces/

Understanding quantitative easing:

https://www.bankofcanada.ca/2022/06/understanding-quantitative-easing/

Bank of Canada:

https://twitter.com/bankofcanada?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5EauthorThe

Consequences of the Bank of Canada’s Ballooned Balance Sheet:

https://www.cdhowe.org/sites/default/files/2022-11/Commentary_631.pdf

Bank of Canada assets and liabilities: Weekly (formerly B2):

https://www.bankofcanada.ca/rates/banking-and-financial-statistics/bank-of-canada-assets-and-liabilities-weekly-formerly-b2/

Tiff Macklem acknowledges the Bank of Canada is losing money for first time:

https://financialpost.com/news/economy/bank-of-canada-losing-money-for-first-time

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