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 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 […]