September 22, 2022

The BOC Is Losing Money For The First Time Ever On Rising Rates

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The BOC Is Losing Money For The First Time Ever On Rising Rates Join Us On Telegram and share ideas and comment without any censorship - https://t.me/frontpagenews1

Hi viewers, I hope you all are doing great today. You know, at this point, you will agree Tiff Macklem most definitely has his days numbered as the Governor of the bank of Canada. I mean, this guy's incompetence is just really gross, and of course, it's clear to everyone in Canada that added with Justin Trudeau's economic ineptitude, there was no way Canada could've escaped this economic mess it's currently in. And even funnier now is the fact that a financial institution like the Bank of Canada is running into severe losses which of course would have definitely been helped to not turn out this worse if the Canadian central bank had competent individuals at its helm of affairs. Well, I guess with Pierre poilievre becoming the new leader of the opposition party, Macklem might eventually find himself fired like he's been promised earlier in May. And if you're wondering what's really happening in today's story on another revelation of the incompetence of the Trudeau Liberals? Please, stay around and watch as we dive into the discussion in today's video. So, it appears the Bank of Canada's historic fight against deflation during the co vid recession and now the incredible inflationary surge that has come in the wake of the recovery will most likely bring an end to the central bank's unblemished streak of profitability. Apparently, the inflationary surge has come as a result of the recovery from the recession. In a recent statement, the central bank announced that it estimates the bank's net interest income to be negative when its third quarter results are announced on November twenty nine. Apparently, as a result of rises in the interest rate that is being paid on deposits, the bank's interest expenditure has been steadily climbing over the last several years." However, the Bank of Canada spokesman, Paul Badertscher, emphasized that the losses would not have an effect on the monetary policy and that they are expected to be eliminated over the next several years. According to the statement, "the net interest losses will be transitory and will gradually reduce over time." Meanwhile, it would be important to know that the Bank of Canada is now sitting on deposits totaling two hundred billion dollars, and it has to pay interest on those deposits. And as a result, it has suffered losses as a direct consequence of the huge increase in interest rates that has occurred over the last few months. These interest payments are made by the central bank to commercial banks. It is the price that the central bank agreed to provide those institutions when the central bank acquired huge amounts of assets on the secondary market beginning in the uncertain and financially risky days in the spring of 20 20. This practice is more commonly known as quantitative easing. And, of course, the central bank has been earning money, and a lot of money, off of the securities that it has held over the course of the last couple of years. Apparently, the interest that the central bank was obligated to pay out was far lower than the amount of money that came into the central bank's coffers as a result of the bond-buying program. Welcome to First Page News 🤝 We share conservative political news to inform and update you about the happening in politics and in our society that the mainstream media will rather hide from you. ------------------------------------------------------------------------------------------- Sources: https://www.thestar.com/politics/poli... ------------------------------------------------------------------------------------------

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