Bank of Canada Hikes Policy Rate To 0.50% From Record Low 0.25% To Fight Inflation

–BOC Keeps Reinvesting in Government Bonds on Its Balance Sheet –BOC: Russia’s Invasion of Ukraine ‘A Major New Source of Uncertainty’–BOC: Expect Further Rate Hikes As Economic Growth, Inflation Pressures Continue –BOC: To Consider Start of Quantitative Tightening Based on Economic Assessment By Max Sato (MaceNews) – The Bank of Canada on Wednesday raised its […]

Analysis: Canada’s Economy Survives Anti-Covid Mandate Blockade, Reputation at Stake

By Max Sato (MaceNews) – The Canadian economy appears to have emerged little hurt overall from a temporary blockade of its key US trade route caused by a truckers-led protest against anti-Covid mandates, but the government failure to prevent occupations of crucial border crossings and the national capital has tarnished the country’s reputation as an […]

Canada’s PM Trudeau Invokes Emergencies Act To Clear Trucker Blockades

— Trudeau: Fresh Tools ‘Time-Limited, Geographically Specific’ — Trudeau: Not Calling in Military As Solution To Ending Illegal Occupations By Max Sato (MaceNews) – Canadian Prime Minister Justin Trudeau said Monday that he has invoked the Emergencies Act for the first time ever, which will give the federal government temporary 30-day extraordinary powers to help […]

Reports: Canada’s PM Trudeau Weighs Using Emergency Act to Clear Trucker Blockades

(MaceNews) – Canadian Prime Minister Justin Trudeau is considering using the Emergency Act, which would limit civil liberties and give the federal government temporary powers to help end blockades at US borders by truckers protesting Covid mandates, news reports said. Trudeau told his Liberal Party caucus on Monday he would invoke the never-before-used Emergencies Act […]

Update: Bank of Canada’s Macklem Sees Multiple Rate Hikes But Not on Autopilot

— Adds governor comments from news conference, background at bottom By Max Sato (MaceNews) – Bank of Canada Governor Tiff Macklem on Wednesday stressed that the bank’s latest view that domestic interest rates are “on a rising path” does not mean that the bank’s policymakers would automatically keep raising rates once they embark on tightening.   […]

Bank of Canada Keeps Record-Low Rate But Ends Forward Guidance on Easing

— BOC’s Macklem: Taking Deliberate Steps Toward Higher Interest Rates— BOC To Keep Govt Bonds on Its Balance Sheet Until It Starts Raising Rates— BOC Revises Up 2022 CPI Forecast To 4.2% From 3.4%; 2023 Unchanged at 2.3%— BOC Lowers 2022 GDP Forecast to 4.0% From 4.3%, 2023 To 3.5% Vs 3.7% By Max Sato […]

BOC Q4 Survey: Business Sentiment Up on Capacity Pressures, Demand Pickup

— Survey Conducted Nov. 15-Dec. 6, Before Surge in Omicron-Led Covid Cases — 67% of Firms in Canada See Above 3% Inflation Over 2 Years Vs. 45% in Q3 — BOJ Nov Consumer Survey: More Concerned About Inflation, Hard To Control By Max Sato (MaceNews) – Sentiment among companies in Canada continued improving toward the […]

Bank of Canada Keeps Record-Low Rate, Still Sees a Hike in Mid-2022

By Max Sato (MaceNews) – The Bank of Canada on Wednesday left its record-low policy rate — the target for overnight lending rates — at 0.25%, as expected, to continue supporting economic recovery while sticking to its recent projection that a rate hike is likely to come sometime between April and September.   “The Governing […]