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Website #3
http://www.cbc.ca/news/business/bank-of-canada-poloz-1.4004440

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http://www.cbc.ca/news/politics/bank-of-canada-unveils-new-10-banknote-for-canada-150-celebrations-1.4060501

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http://www.macleans.ca/economy/economicanalysis/pressure-is-growing-on-the-bank-of-canada-to-raise-interest-rates/

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(https://www.youtube.com/watch?v=7chpllnU-To)

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Look at the innovative security features and design of the new $100 polymer note.

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Video #2 (http://business.financialpost.com/news/economy/how-the-bank-of-canada-has-done-so-far-and-where-will-it-go-from-here)

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With the Bank of Canada set to make its rate decision today, top economists take stock of what January's surprise rate cut has done for the economy and where the key borrowing level is heading next

OTTAWA - Stephen Poloz has kept markets on edge ever since an unexpected chop to the Bank of Canada's key interest rate in January - the first adjustment, up or down, in four-and-a-half years.

[np_storybar title="Stephen Poloz may have to drop rates to zero, former adviser warns
" link=" http://business.financialpost.com/news/economy/stephen-poloz-may-have-to-drop-rates-to-zero-ex-bank-of-canada-adviser-warns"%5D

The Bank of Canada may be forced to make the cut within the next six to 18 months as a rising Canadian dollar threatens the recovery, according to David Wolf
[/np_storybar]

The Bank of Canada governor and his policy team are likely to keep their options open on Wednesday, maintaining the trendsetting lending level at 0.75 per cent - down from the one per cent set in September 2010.

Poloz has said the "insurance" cut is working for now.

But plenty has happened since the central bank's surprise 25-basis-point cut in the rate on Jan. 21.
The Canadian economy has been sideswiped by the global collapse in oil prices, threatening to pull resources-dependent Alberta into recession, perhaps Saskatchewan along with it.

It hasn't helped that the U.S. economy also got off to a slow start in 2015.

Now, bank watchers are waiting for the other shoe to drop - or, more likely, to go up.

We asked some of Canada's top economists to take stock of the Bank of Canada's policy decisions this year - their effectiveness and where the key borrowing level is heading next, and when.

Douglas Porter, BMO Capital Markets chief economist

"I think [the rate cut] was modestly effective. We are talking about a 25-basis-point cut. Ultimately, only 15 basis points of which showed up in prime lending rates. Initially, of course, there was a shock reaction by the Canadian dollar. There was a shock reaction in the bond market and there was a positive reaction in equities. Of the three, I would say, really, the only lasting effect was on the equity market. For equities, we're up a little more than six per cent from pre-cut levels, which is substantial. . . But all that aside, it didn't have a huge, lasting impact on financial markets. By the same token, I do not believe it made a significant difference in business or consumer confidence either. In fact, I would argue to this day it had a mixed impact on both. . . . It may have actually hurt confidence rather than help it, initially." I do think the bank's cut did probably play a role in some of the aggressive mortgage rate cuts we've seen among banks in recent months. I think it would be pretty tough to justify a rate increase any time soon - unless oil prices came flaring back and there was a view that this was sustainable. But I suspect though the bank will be very slow to turn around. They'll be very cautious, wanting to see the full impact of the oil collapse in oil prices over the past year and to make sure the U.S. soft patch we've seen since the start of the year is just a soft patch and not a more meaningful slowdown. We're forecasting them staying on hold over the next year and start raising rates in the second half of 2016. But given how quickly they acted in January, I certainly wouldn't rule out another move."

Craig Alexander, TD Economics chief economist

"The rate cut in January provided some stimulus to the Canadian economy, but the impact was very slight. Interest rates were already incredibly low, and much of the drop in yields in the early months of the year reflected a rally in global fixed income markets, which has now reversed course. The biggest stimulative impact was from a weaker Canadian dollar, but the surprise cut only likely lowered the exchange rate by a cent or two. The implication is that if the January surprise rate cut had not happened, I would not have materially changed any of my forecasts other than a slight lower of the Canadian dollar in the early months of the year. I don't think the Bank of Canada needs to cut rates further, or should cut rates further. I worry about household debt, and consumers don't need more incentive to leverage their finances. The Canadian economy will be heavily affected by what happens to the global economy, which the Bank of Canada cannot control. If the Canadian economy fails to rebound from the likely flat reading of economic growth in Q1, I think the bank will start to consider further cuts. However, I would urge them not to cut again unless it looks like the economy is heading for another downturn. They are already providing massive stimulus, and it is leading to an indebtness problem that will need to be addressed in the future."

Avery Shenfeld, chief economist, CIBC World Markets

"The rate cut was only of marginal significance through the interest rate channel, as prime only dropped 10 basis points, and 10-year rates have recently backed up under the influence of Treasury yields. But the Canadian dollar is likely weaker than it would have been otherwise, as it underscored to markets that the Bank of Canada will also not be hiking when the Fed does so. A weaker trading range for the Canadian dollar will, with a lot of patience, help the export sector rebuild. That's not a one-year story, but one that will play out over the next half decade or so, and requires the currency to stay at a more competitive level than it was at in the 2010-2013 period. Given that the impact was largely through the exchange rate, the Bank of Canada could be compelled to cut again if we saw the combination of continued slow growth and an appreciating Canadian dollar that threatened to undermine the desired rotation to improved export performance. A rate hike is highly unlikely in the "near future," but could be on tap for 2016 if oil recovers, and hikes by the U.S. Federal Reserve allow room for the Bank of Canada to raise rates without sending the Canadian dollar soaring.

Dawn Desjardins, assistant chief economist, Royal Bank of Canada

The bank's decision to cut resulted in an easing in financial conditions and in turn an acceleration in business borrowing via increases in longer-term financing, and short-term financing providing the capital needed for firms to increase investment to expand capacity - outside the oil and gas sector. The easier financial conditions also boosted household demand for mortgage and consumer credit. These developments will help to offset the downward pressure being exerted on the economy from the pullback in the oil and gas sector with both businesses and consumers poised to increase spending in the quarters ahead after a soft start to 2015. A reversal of the hit from the weather and a recovery in manufacturing sector activity sets up for a snapback in growth in the second quarter. We are also anticipating a rebound in housing sector activity, which may have beenless robust in the absence of a rate cut. We expect the bank's next move will be a rate hike, based on our view that the economy will grow at an above-potential pace in upcoming quarters resulting in the output gap closing in the middle of 2016.

Emanuella Enenajor, senior economist, BofA Merrill Lynch

The main channel of the Bank of Canada rate cut was through mortgage rates. The easing in the overnight rate contributed to a slight decline in Canadian mortgage rates, supporting an increase in house prices and credit demand. The Canadian dollar depreciated modestly in the wake of the ease, but any benefit from the currency will come with notable lags. If the Bank of Canada hadn't cut rates, growth this year may have been a tenth of a per cent or so lower. A rate cut would be justified if it is clear that the Canadian economy is set to grow notably below the BoC's forecast, a sign of a persistently negative output gap and persistent downside inflationary risk.

Derek Holt, vice-president, Scotiabank Economics

"I think the cut had a modestly positive impact, but would place it second to the impact of broader global forces that had lowered bond yields and weakened the currency. Those global forces have now reversed significantly. The cut added some stimulus to rate-sensitive sectors of the economy, like housing, and that effect continues to operate. I don't see it as credible to forecast a further rate cut. We forecast the BoC to be on hold throughout 2015-16. To hike before then is hardly out of the question, but it would require large unexpected upsides to growth and for the temporary upward influences on core inflation to be more permanent in nature. "

Sherry Cooper, chief economist, Dominion Lending Centres

I think the rate cut was warranted. It did lead to lower mortgage rates, which does spur housing and/or put more money in people's pockets. It did lower the Canadian dollar, which boosts exports at the margin. The effects are relatively small, but can only be estimated. We can't know for certain. There will be no rate increase until next year and not until we are much closer to full capacity utilization and two-per-cent inflation.

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How the Bank of Canada has done so far, and where will it go from here

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With the Bank of Canada set to make its rate decision today, top economists take stock of what January's surprise rate cut has done for the economy and where the key borrowing level is heading next OTTAWA - Stephen Poloz has kept markets on edge ever since an unexpected chop to the Bank of Canada's key interest rate in January - the first adjustment, up or down, in four-and-a-half years.

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Video #1 (http://globalnews.ca/news/3143577/heres-how-the-economy-could-combust-according-to-the-bank-of-canada/)

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The Bank of Canada recently explained in a video different ways the Canadian economy could fall apart. The two main culprits? High household debt and housing market imbalances.
READ MORE: Consumer spending fuels Canada's economy - but also puts it at risk
"People can often cope with these vulnerabilities for an extended period," Joshua Slive, a senior policy advisor with the Bank of Canada, said in the video.

"But an economic shock such as a severe recession could trigger a negative chain of events."

Here's what Slive says might happen in that "negative chain of events".

First, a sharp hike in unemployment would leave many households in a "difficult position," forcing Canadians to default on mortgages. Roughly 70 per cent of debt in Canada is mortgage debt.
READ MORE: Canadians owe $1.67 for every dollar of disposable income: Statistics Canada
A rash of foreclosures would be next. If Canadians default on their mortgages, lenders could try to recoup the cash by foreclosing and selling the properties, often at rock-bottom prices.

"At the same time, other households are likely to delay house purchases until the economy improves," Slive said.

"In a housing market that is already vulnerable, this pressure could cause a large drop in house prices."

READ MORE: Canada facing economic unknowns in 2017 in wake of President-elect Donald Trump
The glut of homes on the market would cause house prices to plummet, leaving many high indebted households with loans that eclipse their property's value.

Then consumer spending would likely fall across the board, impacting businesses big and small, and as a result, the people employed by those business. This could lead to fewer hours and job cuts, putting even more pressure on the job market.

Then, because lenders are stressed, it would be harder for Canadians to secure a loan.

The central bank's scenario is just one possible threat to Canada's economy.

Last week the Bank of Canada warned that high consumer debt levels are leaving the economy at risk.
WATCH: Climbing debt loads opening up weak spot in Canada's financial stability: Poloz
Meanwhile, a " sudden increase" in interest rates could send house prices crashing and unemployment rates soaring, data released by the Canada Mortgage and Housing Corporation (CMHC) suggested last month.

Fortunately for Canadians, our financial institutions undergo rigorous stress tests, Slive said, and should be able to weather the storm. But things would get messy.

"Still, the impact on the broader economy and the financial system would be significant."

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Here's how the economy could combust, according to the Bank of Canada

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The Bank of Canada recently explained in a video different ways the Canadian economy could fall apart. The two main culprits? High household debt and housing market imbalances. READ MORE: Consumer spending fuels Canada's economy - but also puts it at risk "People can often cope with these vulnerabilities for an extended period," Joshua Slive, a senior policy advisor with the Bank of Canada, said in the video.

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Hi there, I am pleased to welcome you to my padlet on the Bank of Canada's functions. In this padlet I hope to inform you on the Bank of Canada and it's functions. More specifically, it's role in balancing the Canadian economy and actions it takes to do so.

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Padlet #1                 Bank of Canada: Functions

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Padlet #1                 Bank of Canada: Functions

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By: Zachary Capon