CONTACT - (416) 543-7252 

 Sam@SamChaim.com 

 

  Mortgage Calculator

Calculate Your Payments

  Buyer Resources

Best Real Estate Advice

  Seller Resources

Selling For Top Dollar

  Mobile Listings

Search Anywhere Always

  Here To Help You

You Can Contact Me Always

RSS

Bank of Canada maintains policy rate, continues quantitative tightening

Bank of Canada maintains policy rate, continues quantitative tightening

The Bank of Canada has maintained its target for the overnight rate at 5% and is continuing quantitative tightening. The global economy is slowing, and inflation has decreased. 

In the United States, growth remains strong, but it is expected to weaken in the coming months due to past policy rate increases. The euro area has experienced weakened growth and lower energy prices, impacting inflation. 

Oil prices are $10-per-barrel lower than assumed in the previous report.

Canada's economic growth stalled in 2023, with a 1.1% contraction in the third quarter. Higher interest rates are constraining spending, leading to minimal consumption growth.

The labor market is easing, and despite rising wages, the overall economic data suggests no excess demand.

The slowdown in the economy is reducing inflationary pressures, contributing to a drop in CPI inflation to 3.1% in October. Shelter price inflation has increased due to faster growth in housing costs. 

The Bank's preferred measures of core inflation have been around 3.5-4%. With signs that monetary policy is moderating spending and alleviating price pressures, the Bank has decided to hold the policy rate at 5% and continue normalizing the balance sheet. 

The Governing Council remains concerned about inflation outlook risks and is prepared to raise the policy rate further if needed. The focus is on sustained easing in core inflation, balancing demand and supply, inflation expectations, wage growth, and corporate pricing behaviour.

The Bank is committed to restoring price stability for Canadians, with the next rate target announcement scheduled for January 24, 2023.

Read Full Report

Comments:

No comments

Post Your Comment:

* indicates required fields.
Your Name: *
Your email will not be published
Your Email: *
Comment: *
Please type the text as it appears above: