Housing and jobs may still prompt Bank of Canada rate hike
Filed Under Main Content · Tagged: Bank Canada, Bank Of Canada, Bank Of Canada Governor, Canada Post, Canadian Economy, Chief Economist, Desk, Divergence, Employment Data, Inflation Target, Jobs Bank, Jobs Canada, Mark Carney, Momentum, National Bank Financial, Overnight Rate, Policy Stance, Rate Hike, Slowdown, Strategist
Financial Post- The threat of a renewed slowdown in the United States and slowing momentum for the Canadian economy has the Bank of Canada nervous about its next move. But despite heightened expectations that the central bank will pause at its next meeting, potential housing regulation and the next round of employment data may influence the decision.
After two recent increases to its overnight rate, Bank of Canada governor Mark Carney on Thursday reiterated that “financial conditions remain exceptionally simulative.” He also warned that while Canada’s situation and the inflation target dictate a different policy stance than in the United States, “there is a limit to this divergence.”
Stéfane Marion, chief economist and strategist at National Bank Financial strongly agrees, but wonders what the actual of divergence is…
Housing and jobs may still prompt Bank of Canada rate hike | Trading Desk | Financial Post
Bank of Canada poised to raise interest rates
Filed Under Main Content · Tagged: Bank Of Canada, Basis Points, Central Bank Governor, Consumer Confidence, Economic Growth, Economists, Globe And Mail, Interest Rates, Labour Market, Largesse, Mail Mark, Mark Carney, Pall, Policy Stance, Private Sector, Recession, Securities Dealers, Stimulus, Straight Time, World Bank
The Globe and Mail- Mark Carney is likely to raise borrowing costs for the second straight time Tuesday, while continuing to sound a cautious tone as belt-tightening in Europe, efforts to restrain China’s growth, and plunging consumer confidence in the U.S. cast a pall over Canada’s prospects.
All 12 primary securities dealers and most economists say the central-bank governor will lift his main interest rate by another 25 basis points, to 0.75 per cent. The labour market has recouped most of the jobs lost during the recession and companies are seeing better demand, suggesting the private sector will be able to lead economic growth after federal and provincial stimulus largesse runs out later this year.
Investors are less confident about later decisions, and that may not change this week because Mr. Carney is likely to reiterate that his path to a more neutral, pre-crisis policy stance depends on the developing economic stories around the world…
Bank of Canada poised to raise interest rates – The Globe and Mail
