This article was last updated on April 16, 2022
Canada: 
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The Bank of Canada has officially announced to withdraw its explicit warning that cautions about higher rates looming due to its much gloomier economic outlook and stubbornly low inflation. The warning states that Canada is most expectedly growing more slowly than it had predicted a few months ago, and consequently the central bank has now assessed that it is just as likely to cut or increase interest rate.
Bank of Canada made this abrupt decision on Wednesday, though the possibility of drooping the bank’s so-called tightening bias, i.e. in place since April, 2012, conflicts with a significant downgrade of the bank’s forecast for GDP growth in Canada. Bank of Canada Governor, Stephen Poloz, frankly informed reporters that the bank aims at being more open about how it plots its interest rate decisions. However, he refrained from stating what exactly prompted the bank to lower rates, sighting reason that monetary policy is about managing risks, not engineering. He stated that “we’re trying to be totally transparent and honest,” and “we’re never going to tell you exactly what it takes because that’s an answer we just don’t have.”
The bank has announced to cut its forecast for both the Canadian and U.S. economies, that also not for this year alone, but also for 2014 and 2015 as well. The bank has indicated that economic environment is now “less favourable for Canada,” highlighting the painfully slow recovery from recession in the United States, Canada’s main trading partner.
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