Bank of Canada Jacks Up Rate by 100 Bps to 2.5% as Bank ‘Front-loads’ Rate Hikes
–BOC: Interest Rates Need to Rise Further, Pace Up to Economic Assessment –BOC: Canadian Economy in Excess Demand, Inflation High and Broad –BOC Revises Up CPI Forecasts for Next Few Years, Sees Slower GDP Growth By Max Sato (MaceNews) – The Bank of Canada on Wednesday surprised the markets by jacking up its policy interest […]
BOC Q2 Survey: Business Sentiment Dips for 2nd Straight Quarter on High Costs, Supply Delays
—Labour Shortages More Intense, Limiting Sales Growth; Wages Rising Fast –Capex Plans Backed by Demand but May Slow Amid High Costs, Higher Rates –Consumer Survey Also Points to Higher Inflation, Uncertainty By Max Sato (MaceNews) – Sentiment among companies in Canada declined for the second straight quarter in April-June, hit by rising costs and […]
Bank of Canada’s Beaudry: May Need To Hike Rates Above 2-3% Neutral Rate As Inflation Persists
By Max Sato (MaceNews) – The Bank of Canada may need to keep raising its policy interest rate above what it sees as neutral, currently in the 2% to 3% range, as inflation has been rising faster than expected and could become much harder to control, Deputy Governor Paul Beaudry said Thursday. He also said […]
Bank of Canada Raises Policy Rate Again to Tame Inflation, Says to Rise Further Given Strong Growth, High Inflation
–BOC: Ukraine War, China’s Covid Lockdowns, Supply Constraints Weighing on Growth, Boosting Inflation –BOC Repeats: Timing, Pace of Further Rate Hikes Set by Economic Assessment By Max Sato (MaceNews) – The Bank of Canada on Wednesday lifted its policy interest rate – the target for overnight lending rates – by another 50 basis points to […]
Bank of Canada Deputy Gov. Gravelle: May Hike Above Neutral Rates or Pause as Prices, Growth Shift
–Gravelle: BOC Not on Pre-Set Path Toward Specific ‘Terminal’ Rate –Gravelle: Canadian Economy Can Take Higher Interest Rates –Gravelle: Supply Chain Bottlenecks Could Last Longer, Spending Could Surge –Gravelle: Canadians Have More Liquid Assets, Reduced Non-Mortgage Debts –Gravelle: Prices Could Dip, Spending on Goods Could Slump in Shift to Services –Gravelle: Households Highly Indebted in […]
Bank of Canada Rogers: Need Higher Interest Rates, To Watch How Economy Responds
–Senior Deputy Governor Says BOC ‘Not on Autopilot’ in Rate Actions –Rogers: ‘We Have Tools, Committed to Getting Inflation Back to Target’ By Max Sato (MaceNews) – Interest rates in Canada need to rise further to stave off overheating from a “remarkably fast” recovery from the pandemic-caused slump but policymakers are “not on an autopilot” […]
UPDATE: Bank of Canada Hikes Policy Rate by 50 Bps To 1% as Ukraine War Adds Fuel to Inflation, Supply Delays
–BOC Also Decides To Begin Quantitative Tightening, Gradually Trim BalanceSheet–BOC: Russia’s Invasion of Ukraine ‘Causing New Economic Uncertainty’–BOC Repeats: Timing, Pace of Further Rate Hikes Set by Economic Assessment–BOC Governor Macklem: Prepared To Be ‘Forceful’ in Rate Hikes If Needed By Max Sato (MaceNews) – The Bank of Canada on Wednesday jacked up its policy […]
BOC Q1 Survey: Business Sentiment Slips but Still High on Demand
–Firms See Rising Costs Amid Ukraine War, Higher Wages due to Tight Labor Markets — 70% of Firms in Canada See Above 3% Inflation Over 2 Years Vs. 67% in Q4 — BOC Consumer Survey: Prices Surge but Longer-Term Inflation Views Anchored By Max Sato (MaceNews) – Sentiment among companies in Canada dipped in the […]
<strong>Bank of Canada to ‘Act Forcefully’ to Tame Inflation: Deputy Governor Kozicki </strong>
By Max Sato (MaceNews) – Bank of Canada Deputy Governor Sharon Kozicki on Friday stressed that the bank’s is determined to fight inflation with more actions “forcefully,” following its first rate hike in over three years in March, and ahead of its April 13 policy decision. “We have taken action and will continue to do […]
Bank of Canada’s Macklem: Won’t Rule Out 50 bp Rate Hike in Future If Needed
–BOC Governor: To Tighten Policy ‘In a Deliberate and Careful Way’ By Max Sato (MaceNews) – Bank of Canada Governor Tiff Macklem said Thursday that he won’t rule out the possibility of the bank raising the policy interest rate by a faster pace of 50 basis points than its decision Wednesday to conduct the first […]