Economic news

Decision on rate will depend on economic indicators-Bank of Canada

2022.12.08 13:28

[ad_1]



Decision on rate will depend on economic indicators-Bank of Canada

Budrigannews.com – A deputy governor of the Bank of Canada said on Thursday that the bank will look at the most recent economic data to decide whether or not to raise interest rates further. He also said that the bank would still move quickly if necessary.

On Wednesday, the central bank signaled that its unprecedented tightening campaign was coming to an end by raising its benchmark overnight interest rate by half a percentage point to its highest level in nearly 15 years.

In a speech delivered in Montreal, Deputy Governor Sharon Kozicki stated, “We expect our decisions to be more data-dependent,” adding that the bank is still prepared to be “forceful” with rates if necessary. We are shifting our focus from how much to raise interest rates to whether or not to.”

To combat inflation that is far above its target, the central bank has raised rates at a record rate of 400 basis points in nine months to 4.25 percent, the level it last achieved in January 2008.

“Governing Council agreed that the economy still needs a more sustained moderation of demand,” Kozicki stated, “with the labor market still tight and businesses still finding it easy to raise their prices.”

The bank said that growth was still strong and labor markets were tight on Wednesday, but it dropped the forward guidance it had been using since it started raising rates in March and dropped language that said they would have to go up even more.

More US imposes sanctions against Turkey

Kozicki stated that inflation, which reached 6.9% in October, “remains too high” at more than three times the target of 2% set by the bank. However, Kozicki stated that core inflation three-month rates have decreased to approximately 3.5 percent, indicating “that momentum in inflation is easing.”

According to Kozicki, discussions prior to the rate hike on Wednesday focused on the resolution of supply challenges, the slowdown in demand caused by higher rates, and the development of inflation and inflation expectations.

She stated that softening demand in interest-rate-sensitive areas like housing activity and continued strong growth in the third quarter are indications that tighter monetary policy is “working to rebalance supply and demand.” On January 25, the next meeting to set policy will take place.

In an effort to increase transparency, Kozicki reiterated that the bank will begin publishing a “summary of deliberations” the following year.

The Canadian dollar was up 0.5 percent at 1.3580 to the United States dollar, or 73.64 cents.

Decision on rate will depend on economic indicators-Bank of Canada

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 84,064.52 1.08%
ethereum
Ethereum (ETH) $ 1,606.98 1.94%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.12 1.59%
bnb
BNB (BNB) $ 583.38 0.70%
solana
Solana (SOL) $ 127.88 2.76%
usd-coin
USDC (USDC) $ 1.00 0.00%
tron
TRON (TRX) $ 0.250764 0.79%
dogecoin
Dogecoin (DOGE) $ 0.154971 3.42%
cardano
Cardano (ADA) $ 0.618828 3.47%
staked-ether
Lido Staked Ether (STETH) $ 1,604.86 1.96%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 84,107.53 0.96%
leo-token
LEO Token (LEO) $ 9.36 0.13%
avalanche-2
Avalanche (AVAX) $ 19.34 5.06%
chainlink
Chainlink (LINK) $ 12.36 4.10%
the-open-network
Toncoin (TON) $ 2.94 3.19%
stellar
Stellar (XLM) $ 0.238146 0.94%
usds
USDS (USDS) $ 1.00 0.01%
shiba-inu
Shiba Inu (SHIB) $ 0.000012 2.40%
sui
Sui (SUI) $ 2.12 4.35%
wrapped-steth
Wrapped stETH (WSTETH) $ 1,927.28 1.99%
hedera-hashgraph
Hedera (HBAR) $ 0.15907 5.28%
bitcoin-cash
Bitcoin Cash (BCH) $ 323.78 0.90%
litecoin
Litecoin (LTC) $ 75.15 2.67%
polkadot
Polkadot (DOT) $ 3.59 4.16%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.02%
bitget-token
Bitget Token (BGB) $ 4.29 0.21%
hyperliquid
Hyperliquid (HYPE) $ 15.19 4.35%
ethena-usde
Ethena USDe (USDE) $ 0.99925 0.03%
pi-network
Pi Network (PI) $ 0.661867 10.85%
weth
WETH (WETH) $ 1,605.31 2.09%
whitebit
WhiteBIT Coin (WBT) $ 27.64 0.84%
monero
Monero (XMR) $ 213.89 0.50%
wrapped-eeth
Wrapped eETH (WEETH) $ 1,709.85 2.00%
dai
Dai (DAI) $ 1.00 0.01%
uniswap
Uniswap (UNI) $ 5.22 3.88%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 84,037.52 1.13%
okb
OKB (OKB) $ 51.13 3.50%
pepe
Pepe (PEPE) $ 0.000007 5.85%
aptos
Aptos (APT) $ 4.66 4.53%
gatechain-token
Gate (GT) $ 22.31 1.55%
tokenize-xchange
Tokenize Xchange (TKX) $ 33.75 0.03%
ondo-finance
Ondo (ONDO) $ 0.842731 5.54%
susds
sUSDS (SUSDS) $ 1.05 0.02%
near
NEAR Protocol (NEAR) $ 2.05 4.98%
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00 0.00%
mantle
Mantle (MNT) $ 0.700373 0.90%
internet-computer
Internet Computer (ICP) $ 4.80 2.26%
crypto-com-chain
Cronos (CRO) $ 0.082749 2.88%
ethereum-classic
Ethereum Classic (ETC) $ 14.95 3.03%