<strong>Bank of Canada Governor: ‘Far Too Early’ to Discuss Rate Cuts, Trying to Balance Risks of Over- and Under-Tightening</strong>
–BOC’s Macklem: Governing Council Statement Points to ‘Conditional Pause’ –Macklem: Prepared to Raise Rates Further If Inflation Moves Higher Than Forecast By Max Sato (MaceNews) – It is too early to discuss whether the Bank of Canada will need to consider lowering interest rates to support economic growth as it takes time to bring inflation […]
<strong>Bank of Canada Hikes Key Rate by 25 Bps to 4.50%, as Expected; To Hold Policy if Economy Moves as Forecast</strong>
–BOC Changes Stance from December View of Mulling If Rates Need to Rise Further –BOC Repeats: Canadian Economy in Excess Demand, Labor Markets Tight –BOC Revises Down 2023 CPI Forecast, Sees Modest GDP Growth By Max Sato (MaceNews) – The Bank of Canada on Wednesday raised its policy interest rate — the target for overnight […]
<a href="https://craft.macenews.com/admin/entries/stories/52087-bank-of-canada-expected-to-lift-key-rate-by-25-bps-then-pause-this-year-as-inflation-continues-easing">Bank of Canada Expected to Lift Key Rate by 25 Bps, then Pause This Year as Inflation Continues Easing</a>
By Max Sato (MaceNews) – The Bank of Canada is widely expected by economists to slow the pace of its tightening, raising its short-term interest rate target by 25 basis points to 4.50% on Wednesday after conducting more aggressive hikes in 2022, then take a pause for the rest of the year as inflation eases […]
Fed’s Brainard: Slower Rate Hike Pace Lets FOMC ‘Probe’ For ‘Sufficiently Restrictive’ Level
By Steven K. Beckner (MaceNews) – Federal Reserve Vice Chairman Lael Brainard said Thursday that a slower pace of monetary tightening will allow the Fed to “probe for” a level of interest rates that is “sufficiently restrictive” to bring down inflation, while keeping an eye on divergent economic risks in a highly uncertain environment. Brainard, […]
<strong>BOJ Keeps Easing Stance Amid Slowing Global Growth, Expects Cost-Push Inflation to Lose Steam in FY23</strong>
–Board Sees 3% Core CPI Rise in FY22 to Slow to 1.6% in FY23, 1.8% in FY24 –Board Revises Down GDP Forecasts to 1.9% in FY22, 1.7% in FY23, 1.1% in FY24 By Max Sato (MaceNews) – The Bank of Japan said Wednesday its policy board decided unanimously to maintain its basic monetary easing stance, […]
<strong>Bank of Canada Q4 Survey: Business Sentiment Dips for 4th Straight Quarter on Rising Interest Rates</strong>
–Firms Continue to See Inflation Above BOC’s 2% Target in Short Term –In 5 years, Firms Expect Inflation to be Within BOC’s 1-3% Target Range –Most Consumers Expect Mild to Moderate Recession within 12 Months –More Consumers Than Before Pandemic Anticipate Deflation in 5 Years as Supply Bottlenecks Ease By Max Sato (MaceNews) – Sentiment […]
<strong>FOMC Minutes Show Consensus on Tightening to Reduce Inflation</strong>
– But Need For ‘Risk Management,’ Avoiding Overtightening Cited – Officials Anxious to Avoid Perception of Less Anti-Inflation Commitment to By Steven K. Beckner (MaceNews) – At their final monetary policy meeting of 2022, Federal Reserve officials were together in their commitment to reducing inflation in the year ahead, but somewhat less united on how […]
FOMC Minutes Reflect Undimmed Dedication to Quenching Inflation Regardless of Slow Growth Consequences
WASHINGTON (MaceNews) – Federal Open Market Committee policymakers agreed on maintaining anti-inflation momentum with a continuing tolerance for any economic slowdown that may result this year without any premature easing. The Fed staff told the committee anticipated this year will see growth “slow markedly” and that GDP growth will be “subdued” through 2025. “No participants […]
Minneapolis Fed’s Kashkari: Pause Rate Hikes at 5.4%; Consider Cutting If Inflation Falls
By Steven K. Beckner (MaceNews) – Minneapolis Federal Reserve Bank President Neel Kashkari laid out a roadmap for monetary policy Wednesday that calls for a pause in interest rate hikes, followed by rate cuts, but not until the federal funds rate reaches 5.4%. Kashkari, who will be voting on the Fed’s policy-making Federal Open Market […]
<strong>BOJ December Meeting Summary: Must Keep Easing Stance to Help Wage Hikes, Stable 2% Inflation</strong>
–Concerned About Weakened Bond Market Functions, Board Members Argue for Expanding JGB Yield Trading Range –Members See JGB Range Adjustment as Not Tightening –Members Also Discuss Eventual Exit from Easing in Future with No Specifics By Max Sato (MaceNews) – Bank of Japan board members argued that the bank should maintain its easing stance to […]