OTTAWA — The Bank of Canada lost $522 million in the third quarter of this year, marking the first loss in its 87-year history.
In the central bank’s latest quarterly financial report, it says revenue from interest on its assets did not keep pace with interest charges on deposits at the bank, which have grown amid rapidly rising interest rates.
As the Canadian national soccer teams head to their respective FIFA World Cups, Derek Van Diest is on the scene to cover all the action. Expect expert insights and analysis in your inbox daily throughout the tournaments, and weekly on Thursdays for the rest of the season.
Thanks for signing up!
A welcome email is on its way. If you don't see it, please check your junk folder.
The next issue of Corner Kicks with Derek Van Diest will soon be in your inbox.
The Bank of Canada’s aggressive interest rate hikes this year have raised the cost of interest charges it pays on settlement balances deposited in the accounts of big banks.
That’s while the income the central bank receives from government bonds it holds remains fixed.
While testifying before the House of Commons finance committee last week, Bank of Canada governor Tiff Macklem addressed the expected losses.
Macklem said the losses don’t affect the central bank’s ability to conduct monetary policy.