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Bank of Canada recognizes RCMP’s Integrated Counterfeit Enforcement Team with Award of Excellence for Counterfeit Deterrence


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The Bank of Canada today presented the Royal Canadian Mounted Police’s Integrated Counterfeit Enforcement Team (ICET), C Division (Quebec), with the 2017 Law Enforcement Award of Excellence for Counterfeit Deterrence.

This award, which has been presented annually since 2004, recognizes the outstanding achievements of criminal justice professionals and educators involved in the prevention and deterrence of bank note counterfeiting in Canada.

This year’s recipients worked tirelessly for two years to dismantle a ring of counterfeiters who were producing and passing fake $100 bank notes through the Montréal, Québec and Montérégie areas. Dubbed “Projet COUPON,” their investigation fostered close collaboration between the RCMP’s ICET investigators and other Quebec police forces. Their diligent teamwork led to three arrests, the dismantling of four counterfeiting labs and the seizure of almost 4,200 counterfeit notes valued in excess of $400,000. Overall, it is estimated that this ring of counterfeiters introduced more than 9,600 fake bank notes into circulation, defrauding businesses and individuals of almost $1 million.

Richard Wall, Managing Director of the Currency Department, applauded the RCMP team for their role in shutting down the operation. “Through their determination, commitment and sound investigative techniques, members of the RCMP’s Integrated Counterfeit Enforcement Team protected our currency, ensuring that Canadians can continue to use bank notes with confidence,” he said in presenting the award.

Sergeant Marco Roy and Corporal Vincent Roy received the award on behalf of the ICET at the Annual Conference of the Canadian Association of Chiefs of Police in Montréal, Quebec.

Note to Editors:

A photo from the award ceremony is available on CNW Group’s Canada NewsWire.



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Bank of Canada increases overnight rate target to 3/4 per cent


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The Bank of Canada is raising its target for the overnight rate to 3/4 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent. Recent data have bolstered the Bank’s confidence in its outlook for above-potential growth and the absorption of excess capacity in the economy. The Bank acknowledges recent softness in inflation but judges this to be temporary. Recognizing the lag between monetary policy actions and future inflation, Governing Council considers it appropriate to raise its overnight rate target at this time.

The global economy continues to strengthen and growth is broadening across countries and regions. The US economy was tepid in the first quarter of 2017 but is now growing at a solid pace, underpinned by a robust labour market and stronger investment. Above-potential growth is becoming more widespread in the euro area. However, elevated geopolitical uncertainty still clouds the global outlook, particularly for trade and investment. Meanwhile, world oil prices have softened as markets work toward a new supply/demand balance.

Canada’s economy has been robust, fuelled by household spending. As a result, a significant amount of economic slack has been absorbed. The very strong growth of the first quarter is expected to moderate over the balance of the year, but remain above potential. Growth is broadening across industries and regions and therefore becoming more sustainable. As the adjustment to lower oil prices is largely complete, both the goods and services sectors are expanding. Household spending will likely remain solid in the months ahead, supported by rising employment and wages, but its pace is expected to slow over the projection horizon.  At the same time, exports should make an increasing contribution to GDP growth. Business investment should also add to growth, a view supported by the most recent Business Outlook Survey. 

The Bank estimates real GDP growth will moderate further over the projection horizon, from 2.8 per cent in 2017 to 2.0 per cent in 2018 and 1.6 per cent in 2019. The output gap is now projected to close around the end of 2017, earlier than the Bank anticipated in its April Monetary Policy Report (MPR).

CPI inflation has eased in recent months and the Bank’s three measures of core inflation all remain below 2 per cent. The factors behind soft inflation appear to be mostly temporary, including heightened food price competition, electricity rebates in Ontario, and changes in automobile pricing. As the effects of these relative price movements fade and excess capacity is absorbed, the Bank expects inflation to return to close to 2 per cent by the middle of 2018. The Bank will continue to analyze short-term inflation fluctuations to determine the extent to which it remains appropriate to look through them.  

Governing Council judges that the current outlook warrants today’s withdrawal of some of the monetary policy stimulus in the economy. Future adjustments to the target for the overnight rate will be guided by incoming data as they inform the Bank’s inflation outlook, keeping in mind continued uncertainty and financial system vulnerabilities.

 Information note

The next scheduled date for announcing the overnight rate target is September 6, 2017. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on October 25, 2017.  

 



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Governor Poloz unveils new Bank of Canada Museum ahead of public opening on July 1, 2017


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Governor Stephen S. Poloz today welcomed special guests from the government, business and the tourism sectors for a preview of the Bank of Canada Museum, which is opening soon. Located at the corner of Bank and Wellington, in the Bank’s head office complex in downtown Ottawa, the re-designed Museum will help visitors learn about the economy and the role of the central bank in fun, interactive ways.

“I am so proud of this new Museum. It immerses Canadians in the economy and the work of the Bank of Canada in ways that people of all ages can understand and enjoy,” Governor Poloz said.

After a four-year closure, and a complete re-imagining, the Museum will open to the public on July 1, with free admission year-round.

To help visitors of all ages understand the important role they play in the economy, they are placed at the centre of the Museum experience. They begin their visit by creating a digital character, or avatar, to represent them in interactive exhibits that demonstrate how their spending and saving habits ultimately contribute to the Canadian economy. Other highlights include a video game that simulates flying a rocket ship through a galaxy of inflationary and deflationary forces and designing a personalized bank note.  

Visitors will also discover Canada’s monetary heritage, as interpreted through a careful selection of 1,400 artifacts from the National Currency Collection. Examples of international currency and trade items from throughout human history will be on display, as will every bank note series issued by the Bank of Canada since 1935, including the new $10 commemorative note issued to mark the 150th anniversary of Confederation.

Notes to editors:

  • The Bank of Canada is the nation’s central bank. Since 1935, its principal role has been to promote the economic and financial welfare of Canada.
  • The new museum explains the Bank’s four main areas of responsibility: setting monetary policy, promoting a sound financial system, issuing Canada’s bank notes and acting as fiscal agent for the Government of Canada.
  • It also manages the more than 128,000 artifacts in the National Currency Collection, the world’s most complete collection of Canadian currency and related artifacts.
  • For more information about the Museum and its services, visit the website.
  • Contact Media Relations for B-roll and stock photos, available upon request.

About The Bank of Canada’s head office

The opening of the Bank of Canada Museum marks the final phase of a large-scale renewal project undertaken by the Bank of Canada to bring its head office facility up to modern safety, security and structural standards.

The 2016 renewal preserved the cultural and historical significance of the building while addressing 21st century business needs.



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Canadian economy showing encouraging signs, says Senior Deputy Governor Wilkins


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With the adjustment to lower oil prices largely behind us, there are encouraging signs that growth is broadening across regions and sectors, Senior Deputy Governor Carolyn A. Wilkins told the Associates of the Asper School of Business in a speech today.

Senior Deputy Governor Wilkins discussed how having more broad-based economic growth makes it more likely that it will be sustainable over the medium term. This is the horizon Bank of Canada policy-makers consider as they set policy to achieve the Bank’s 2 per cent inflation target.

“While broad-based growth is desirable, it’s not under the direct control of monetary policy, and it’s not our objective. We target a 2 per cent inflation rate,” she said.

Senior Deputy Governor Wilkins focused on diversity in sources of growth from three perspectives: progress made in adjusting to lower oil prices, the range of industries that are growing and the evolution of the labour market.

One sign of progress in adjusting to lower oil prices is the bounce-back in capital expenditures in the oil and gas sector, which is helping to underpin renewed growth in business investment. Another comes from rising consumer demand in energy-intensive provinces. And Bank of Canada models also point to a broadening in provincial activity this year, reinforcing recent results in the Bank’s Business Outlook Survey.

“What’s encouraging is that this growth is not being driven by just a few key industries,” Senior Deputy Governor Wilkins said. The data show that more than 70 per cent of industries have been expanding and the labour market continues to improve.

However, slack in the economy is still translating into below-target inflation, Senior Deputy Governor Wilkins said, and risks to the outlook remain.

To meet its inflation objective, the Bank must consider not only current economic conditions, but also how they will evolve, she said.

“If you saw a stop light ahead, you would begin letting up on the gas to slow down smoothly,” said Senior Deputy Governor Wilkins. “You don’t want to have to slam on the brakes at the last second. Monetary policy must also anticipate the road ahead.”



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Household vulnerabilities have moved higher, but the financial system remains resilient


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Household indebtedness and housing market imbalances—the most important vulnerabilities for the Canadian financial system—have moved higher over the past six months, the Bank of Canada said today in its Financial System Review (FSR). However, “the financial system remains resilient, and macroeconomic conditions continue to improve,” said Governor Stephen S. Poloz.

Household indebtedness has continued to rise in Canada, driven in large part by growth in mortgage lending in the Toronto and Vancouver areas. Recent federal government measures are improving credit quality in the insured mortgage market. At the same time, the share of uninsured mortgages is increasing, especially in markets with high house prices, with some mortgages showing riskier characteristics.

Imbalances in the Canadian housing market have also grown since December, mainly due to an acceleration in prices in Toronto and surrounding areas. While strong fundamentals are supporting price growth in both the Toronto and Vancouver areas, extrapolative expectations are also playing an important role. Macroprudential and housing policy measures are, however, expected to help mitigate this vulnerability over time.

In this FSR, the Bank assesses two separate risk scenarios related to these vulnerabilities.

The first risk scenario focuses on the financial stability implications of an externally generated severe recession, where a nationwide correction in house prices is only one of the channels through which the economy and the financial system are affected. A rise in unemployment and a decline in household income would impair the ability of some households to service their debts, potentially generating broad financial system and economic stress. This risk has a low probability of materializing, but would have a severe impact should it occur. Improving macroeconomic conditions have reduced the probability of this risk occurring.

The second risk scenario looks more narrowly at a significant house price correction in Toronto, Vancouver and their surrounding areas. A decline in house prices in these areas would be unlikely to generate the kind of widespread rise in unemployment and fall in business profitability assumed in the first risk scenario. As a result, while the likelihood of this second risk scenario materializing is higher than that of the first, its impact would be less severe.

Other risks highlighted in the FSR are a sharp increase in long-term interest rates driven by higher global risk premiums and stress emanating from China or other emerging-market economies. The risk of prolonged weakness in commodity prices, which was rated as low in the December 2016 FSR, has now been removed. The economy’s adjustment to lower oil prices is largely complete, and the financial system has been able to manage the negative effects on households and businesses in commodity-producing regions.

The June issue also features three reports written by Bank of Canada staff:

  • Using Market-Based Indicators to Assess Banking System Resilience
  • Canada’s International Investment Position: Benefits and Potential Vulnerabilities
  • Project Jasper: Are Distributed Wholesale Payment Systems Feasible Yet?*

* first published on 25 May 2017

 



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Bank of Canada issues commemorative $10 bank note to mark the 150th anniversary of Confederation


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The Bank of Canada today began circulating the $10 commemorative bank note that celebrates the 150th anniversary of Confederation. Canadians can now obtain this special note at financial institutions. Only 40 million notes are being issued—roughly one for every Canadian.

Governor Stephen S. Poloz was among the first to spend a commemorative note at a store in downtown Ottawa this morning. “This bank note reflects the pride we feel about our country’s accomplishments and the hope we have for our future,” said Governor Poloz. “But it also underpins the confidence Canadians can have in their bank notes.  The new security features of this $10 note make it the most secure Canadian bank note to date.”

The new security features include a colour-shifting image of an arch found in the Memorial Chamber on Parliament Hill, as well as three-dimensional maple leaves. Like the security features of all polymer bank notes, they are easy to verify and difficult to counterfeit.

The Parliamentary Secretary to the Minister of Finance, Ginette Petitpas Taylor, said she hoped the bank note would inspire Canadians. “This year, Canadians will have the opportunity to reflect on our history and celebrate our heritage. With this note to commemorate 150 years of Confederation, we are reminded of our strengths: our rich diversity and our enduring hope for a brighter tomorrow,” she said.

The Canada 150 bank note celebrates Canada’s history, land and culture, as the country marks this important milestone.

Four Canadians who played significant roles in the country’s parliamentary history are portrayed on the front of the note: Sir John A. Macdonald, Canada’s first prime minister; Sir George-Étienne Cartier, a principal architect of Canadian federalism; Agnes Macphail, the first woman elected to the Canadian House of Commons; and James Gladstone, or Akay-na-muka (his Blackfoot name), Canada’s first senator of First Nations origin.

The design also incorporates other cultural elements: a reproduction of the artwork Owl’s Bouquet by world-renowned Inuit artist Kenojuak Ashevak and the distinctive arrow sash pattern, an important symbol of the Métis nation that also pays homage to the French-Canadian voyageurs of the 18th century.

The reverse of the note features the rugged splendour of Canada’s lands and landscapes: the Lions/Twin Sisters (Western Canada), a wheat field (Prairie provinces), the Canadian Shield (Central Canada), Cape Bonavista (Eastern Canada) and the northern lights (Northern Canada).

Beginning today, the commemorative bank note will be available over the counter at financial institutions across the country. While the commemorative $10 note does not replace the current Polymer series $10 note, which continues to circulate, it is of equal value and can be used in transactions.

Notes to Editors:

  • As announced in December, human rights and freedoms icon Viola Desmond will be featured on a new, regularly circulating $10 note expected in late 2018. This will mark another historic first: Desmond will become the first Canadian woman to be featured on a regularly circulating bank note.
  • Visit our website to find out more about each element featured on the $10 commemorative bank note.
  • View videos about the commemorative bank note and its security features.
  • Download photos from the Bank of Canada’s Flickr gallery.
  • Learn about the public consultation the Bank undertook to inform the visual content and design of this commemorative bank note.
  • This is only the fourth time that the Bank of Canada has issued a commemorative note. The first, issued in 1935, celebrated the Silver Jubilee of King George V; the second, issued in 1967, marked the centennial of Confederation; and the third, issued in 2015, honoured the historic reign of Her Majesty Queen Elizabeth II, who became the longest-reigning sovereign in Canada’s modern era.
  • Find out more about our Principles for Bank Note Design.
  • Consult the Bank of Canada’s bank notes web pages.
  • Contact Media Relations for B-roll, available upon request.



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