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Canada's Central Bank to Change Way of Setting Interest Rates
Canada's central bank will adopt a US-style system later this year to control inflation by setting interest rates.
Currently, the Bank of Canada rate is adjusted whenever Governor Gordon Thiessen sees fit while, under the new system, the bank will schedule eight policy meetings throughout the year to decide on interest rates, The Globe and Mail newspaper said Friday.
The system is similar to the one employed by central banks in the United States, the European Union, Britain and Japan, the newspaper said.
Thiessen and other Bank of Canada officials are in Calgary this week for a meeting of the bank's board of directors.
The bank governor said Thursday that the dates of the eight policy meetings haven't been determined.
"The scheduling of these eight dates would be based on the timing of the flows of economic information that the bank relies on to gauge the economic situation in Canada," he said.
He also expressed confidence in the new system, saying it " would improve the implementation and the effectiveness of monetary policy in Canada as well."
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