BOC Interest Rates 2023 Dates

What is A Central Bank?

A Central bank is a national bank that provides financial and banking services for its country’s government and commercial banking system.

What is the role and function of A Central Bank?

• To set official bank rates used to manage inflation and exchange rates
• To issue a country’s currency
• To set targets and monitor economic data while they implement special tools.

One of the special tools used by a Central Bank is Interest/bank rate adjustments. When a Central Bank sees a need to hike or cut its rates, they simply do so.

Why do Central Banks Hike the Interest Rates?

When the economy is growing at a rate that may lead to hyperinflation (monetary inflation occurring at a very high rate) that is when the Central Bank hikes the county’s Interest Rate.

Why do Central Banks Cut the Interest Rates?

Central banks may cut the Interest Rates to encourage people to borrow more money at a lower rate, be it for new houses or businesses. The aim is to also make saving money less attractive as the returns are lower when the rates are cut.

About Bank of Canada (BOC)

Bank rate           4.50%

Governor           Tiff Macklem

Bank of Canada’s Interest Rate is released 8 times a year. On the 12th of April, BOC will hold its 3rd meeting of 2023 at 4:00 pm (S.A time) and they are expected to maintain the Interest Rates at its current 4.50% and issue the monetary policy statement at the same time, followed by a press conference at 5 pm (S.A time).

Why Do We (traders) Care About Interest Rates?

Interest Rates are a primary tool that a Central Bank uses to valuate their currency. If their plan is to hike, it strengthens the currency and if their plan is to cut, it weakens the currency. Traders also look for clues in the Monetary Policy summary as it focuses more on the future.

If you wish to learn how to trade Interest Rates, read and understand Central Bank’s Monetary policy and press conferences, send me a WhatsApp at +27 78 144 6851 for private lessons, mentorship and coaching.

Thank you for stopping by. To help with your planning, below is the annual schedule of RBA. Please kindly share this post to help me reach out to as many traders as possible who may benefit from this information.