Why a rate hike won’t be a blow to most – The Globe and Mail
Filed Under Main Content · Tagged: Blow, Debt Levels, Economy, Globe And Mail, Globe Mail, Interest Rates, National Bank Financial, Overweight, Rate Hike, Risk
But while the risk of overweight debt levels is a "significant" one to the economy, the effects of the inevitable rise in interest rates should not be overestimated, National Bank Financial says in a new report.
Why a rate hike won’t be a blow to most – The Globe and Mail
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 bumps up rate
Filed Under Main Content · Tagged: Bank Canada, Bank Of Canada, Basis Points, Belief, Budget, Calgary Canada, Calgary Herald, Canada Banks, Caution, Commercial Banks, Economy, Global Recovery, Governments, Growth Outlook, Households, Interest Rate Decision, Pace, Prime Lending Rates, Rate Hike, Temper
Calgary Herald- The Bank of Canada raised its benchmark policy rate by 25 basis points to 0.75 per cent, even though it scaled back its growth outlook on the belief budget cutting among households and governments in advanced economies will "temper" the pace of the global recovery.
Many of Canada’s commercial banks followed suit by raising their prime lending rates.
The central bank acknowledged the economy is weaker than initially believed — but not feeble enough to call off yet another rate hike and likely more in the future.
Certainly, the interest-rate decision delivered yesterday teemed with caution. The central bank’s statement accompanying its decision highlighted how a "greater emphasis" on budget cutting among governments and households would slow the pace of the global recovery…
Bay Street still betting on July rate hike
Filed Under Main Content · Tagged: Bank Of Canada, Banks, Basis Points, Bet, Central Bank Governor, Charlottetown, Economists, Global Developments, Global Economy, Global Growth, Households, Interest Rate, Interest Rates, Mark Carney, Ottawa Citizen, Pace, Rate Hike, Stimulus, Temper, Uncertainties
Ottawa Citizen- Bay Street economists are betting the Bank of Canada will raise interest rates again in July even though the central bank governor reinforced Wednesday that more hikes are no sure bet as aggressive budget-cutting measures in Europe threaten the pace of global growth.
In a speech in Charlottetown, Mark Carney said “considerable uncertainties” remain in the global economy, and that the paring back of debt among households, banks and countries had “barely begun, and will … temper the pace” of global growth.
The central bank raised its key interest rate by 25 basis points on June 1, based on stronger-than-anticipated domestic growth. Prior to Wednesday’s speech, the betting among economists and traders was for Mr. Carney to increase rates again on July 20.
Mr. Carney, however, appeared to dampen expectations Wednesday, arguing any further removal of stimulus from the strongest Group of Seven economy over the next two years had to be balanced against global developments…
