Countdown begins to interest rate hikes
Filed Under Main Content · Tagged: Bank Of Canada, Benchmark Rate, Bmo Capital Markets, Countdown, Economist, Economy, First Steps, Inflation, Interest Rate Hikes, Mark Carney, Michael Gregory, Subtle Changes, Urge
Financial Post- The Bank of Canada took its first steps Tuesday toward returning the country to more normal interest rate levels by signaling a more hawkish tone on inflation and acknowledging the economy is performing better than expected on "vigorous" consumer demand.
The messages were conveyed in the Bank of Canada’s latest interest-rate statement, which kept its record-low benchmark rate of 0.25% as is and pledged to keep it there until July. But most bank watchers took note of subtle changes in the statement, compared with previous rate announcements, and there was enough there for them to begin the countdown to rate hikes.
"I suspect [governor] Mark Carney and company are starting to feel the urge to tighten — not a strong urge now, but an urge nevertheless," said Michael Gregory, senior economist at BMO Capital Markets…
