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The Bank of Canada may lose up to $8.8 billion in the next few years.
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According to a recent report, the central bank is warning that the central bank might encounter a communication issue because of the losses.
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The total loss over the next two or three years could amount to somewhere between $3.6 to $8.8 billion.
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"A lot of what determines the size of the losses really comes down to what interest rates are going to be over the next two to three years," said Trevor Tombe, an economics professor at the University of Calgary and co-author of the report.
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In the fall of this year, it was reported that the Bank of Canada posted its first loss in its 87-year history.
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It lost $522 million in the third quarter.
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The central bank stated in its annual financial report that its revenue from interest on its assets didn't keep pace with the interest costs on bank deposits that have increased amid increasing interest rates.
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The issue is expected to continue as long as interest rates remain high.
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The third factor influencing the number of losses is the size of banks' deposits with the central bank, Tombe stated.