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…
Countdown begins to interest rate hikes
Canadian economy grows 5%, tops forecasts
Filed Under Main Content · Tagged: Bank Montreal, Bank Of Canada, Bank Of Montreal, Burst, Canadian Economy, Deputy Chief Economist, Douglas Porter, Fourth Quarter, Globe And Mail, Globe Mail, Gross Domestic Product, Interest Rate Decision, Interest Rate Hikes, Interest Rates, Likelihood, Montreal Canadian, Odds, S Gross, Second Half, Statistics Canada
Globe and Mail- The Canadian economy expanded by a greater-than-expected 5 per cent in the fourth quarter, raising the likelihood of interest rate hikes later this year.
The country’s gross domestic product grew at the fastest annualized pace since the third quarter of 2000, Statistics Canada said Monday.
The economy’s burst boosts the odds of a string of rate hikes in the second half of the year. The Bank of Canada announces its interest-rate decision tomorrow, and while rates are on hold for now, the tone of the announcement could well acknowledge that growth is picking up speed at a faster pace than anticipated.
“This report shouts strength, and increases the odds the Bank of Canada will begin to hike interest rates in July and stay on that path in the following decisions,” said Douglas Porter, deputy chief economist at Bank of Montreal…
Canadian economy grows 5%, tops forecasts - The Globe and Mail
