It was an anticipated move and one that came with a clear signal the central bank is ready to press pause on its aggressive tightening cycle From alicjawithaj
The central bank governor insisted numerous times in a press conference it is too early to discuss a timeline for cutting ratesThe Bank of Canada hiked its benchmark overnight rate by 25 basis points on Wednesday.
“If economic developments evolve broadly in line with the [Monetary Policy Report] outlook, Governing Council expects to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increases,” the Bank of Canada said in a press release. The Bank of Canada said in its quarterly Monetary Policy Report released on Wednesday that it expects economic growth to stall through the middle of 2023, something it says will allow supply to catch up with demand. The bank said GDP growth will slow to 1 per cent in 2023. It expects the Consumer Price Index to decline significantly this year as the interest rate hikes take hold, falling to around 3 per cent in the middle of 2023 and reaching the Bank's 2 per cent target in 2024.
"We expect developments in the Canadian economy to be weaker than the Bank currently does," Desjardins' senior director of Canadian economics Randall Bartlett wrote in a note to clients. "We continue to [expect] that the Bank is underestimating how quickly core prices will decline, with our forecasts still pointing to a drop in headline inflation to 2 per cent by the second half of this year," Brown wrote in a note to clients.
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.
Bank of Canada raises key interest rate again, signals pause in rate hikesThe Bank of Canada has raised its overnight rate by 25 basis points, moving its policy rate to 4.5 per cent from 4.25 per cent. If projections hold steady, the central bank has signalled a pause at its current rate, while it assesses the full impact of its hikes on the economy.
Read more »
Bank of Canada raises rate to 4.5%, but signals pause in historic hiking cycleThe Bank of Canada has pushed the interest rate to the highest since 2007 to combat inflation. Find out more
Read more »
Bank of Canada raises interest rate again — but hits 'pause' on any more | CBC NewsThe Bank of Canada has raised its benchmark interest rate again, to 4.5 per cent, but hinted that it may now be done with its aggressive campaign of rate hikes.
Read more »
Bank of Canada raises interest rates, says it will take a 'conditional' pauseOTTAWA — The Bank of Canada delivered what it expects to be its last interest rate hike of the cycle as it pauses to assess the effects of higher rates on the economy.
Read more »
Bank of Canada expected to raise key interest rateAustin Lee reports ahead of the Bank of Canada announcement where it's expected the rate will increase to 4.5 per cent.
Read more »
RBC, TD raise prime rate after Bank of Canada interest rate increaseRBC and TD Bank have hiked their prime rate by 25 basis points to 6.7% after the Bank of Canada’s latest policy rate increase. Read on.
Read more »