Why the Bank of Canada can't cut rates this year, despite what the market says

Philippines News News

Why the Bank of Canada can't cut rates this year, despite what the market says
Philippines Latest News,Philippines Headlines
  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 30 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 63%

The central bank on Wednesday said it's looking to hold off on further hikes for the time being to assess the impact of higher rates on the economy From m_zadikian

Bank of Canada Governor Tiff Macklem takes part in an interview after announcing an interest rate decision in Ottawa, Ontario, Canada January 25, 2023. REUTERS/Blair Gable

"Their credibility is at stake," Roger Aliaga-Diaz, senior economist and head of global portfolio construction at Vanguard, tells"[The Bank of Canada's] fear is if they give in to what the market is asking or expecting, and then inflation goes back up, now they don't have the credibility to control it."

That was a big blow to its credibility, Aliaga-Diaz says, adding that the Bank would rather push against market expectations for rate cuts until it's absolutely sure inflation has been tamped down to preserve what little credibility it has left.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

YahooFinanceCA /  🏆 47. in CA

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 expected to hike interest rates for the eighth straight timeBank of Canada expected to hike interest rates for the eighth straight timeEconomists and markets predicting a 25 basis-point hike in the key overnight lending rate in the bank’s bid to wrestle back inflation
Read more »

Violence on the TTC + Bank of Canada expected to hike rates againViolence on the TTC + Bank of Canada expected to hike rates againStart your day with FirstUp, the Star's morning news digest: Violence on the TTC + Bank of Canada expected to hike rates again
Read more »

Bank of Canada raises interest rates to 4.5% and plans to hold - BNN BloombergBank of Canada raises interest rates to 4.5% and plans to hold - BNN BloombergThe Bank of Canada is raising its key interest rate by a quarter of a percentage point and says it expects this to be the last rate hike of the cycle.
Read more »

Bank of Canada raises interest rates: Read the official statementBank of Canada raises interest rates: Read the official statementThe Bank of Canada raised its key interest rate by 25 basis points on Wednesday to 4.5%. Read the central bank\u0027s official statement here.
Read more »

Bank of Canada raises interest rates: Read the official statementBank of Canada raises interest rates: Read the official statementThe Bank of Canada raised its key interest rate by 25 basis points on Wednesday to 4.5%. Read the central bank\u0027s official statement here.
Read more »

Bank of Canada raises interest rates to 4.5% and plans to hold - BNN BloombergBank of Canada raises interest rates to 4.5% and plans to hold - BNN BloombergThe Bank of Canada raised interest rates for an eighth consecutive and potentially final time, saying it expects to move to the sidelines and weigh the impact of its rapid tightening.
Read more »



Render Time: 2025-04-08 07:32:12