Analysts expect the central bank will keep its benchmark interest rate at 5 per cent Wednesday
“Between the half-point rise in the unemployment rate in the past three months – a clear and present warning sign – and the big slowdown in GDP, it’s quite apparent that past rate hikes are now weighing heavily on households, and that it’s a matter of time until that translates into cooler underlying inflation trends,” Bank of Montreal chief economist Doug Porter wrote in a note to clients.
Inflation is a long way down from the 8.1 per cent reached in June, 2022. But much of this disinflation has come from favourable year-over-year oil-price comparisons that are no longer weighing on the CPI. Mr. Macklem warned in July that inflation could get stuck around 3 per cent if the central bank is not careful.
This calculus is particularly tough at the moment, given that rate hikes don’t appear to be as potent as in the past. That has left central bankers wondering if they need to raise rates more or simply give hikes more time to work their way through the economy. “The Bank of Canada has one mandate – and that’s to maintain inflation at their target rate,” Nathan Janzen, Royal Bank of Canada’s assistant chief economist, said in an interview.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
No need for the Bank of Canada to raise rates again: CIBCBank of Canada does not need to raise its interest rate again but it might anyway. Watch CIBC economist Benjamin Tal on the economy
Read more »
No need for the Bank of Canada to raise rates again: CIBCBank of Canada does not need to raise its interest rate again but it might anyway. Watch CIBC economist Benjamin Tal on the economy
Read more »
Ontario Premier Doug Ford calls on Bank of Canada to halt rising interest ratesFord says instead of higher interest rates, he wants the federal government to work with provinces and territories to invest in critical infrastructure projects that will create higher-paying jobs and improve the production of goods and services.
Read more »
Ontario Premier Doug Ford asks Bank of Canada to halt rate hikesFord is the second premier to make a direct appeal to BoC after British Columbia Premier David Eby sent a similar letter last Thursday
Read more »
Ontario Premier Doug Ford asks Bank of Canada to halt rate hikesAnother provincial premier is making a direct appeal to the Bank of Canada to stop raising interest rates.
Read more »
Ontario Premier Doug Ford asks Bank of Canada to halt rate hikesAnother provincial premier is making a direct appeal to the Bank of Canada to stop raising interest rates.
Read more »