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Bank Of Canada

All articles tagged with #bank of canada

finance1 year ago

"Bitcoin Surges as Canada Becomes First G7 Nation to Cut Interest Rates"

Bitcoin's price surged after the Bank of Canada cut its benchmark interest rate from 5.0% to 4.75%, marking the first rate reduction in four years. This move, aimed at easing inflation, has historically benefited risk assets like Bitcoin. The cryptocurrency's price rose 1.5% to $71,600 before settling at $70,930. The rate cut positions Canada as the first G7 country to relax its inflation fight, potentially influencing other central banks' policies.

via Decrypt|
#bank-of-canada#bitcoin#cryptocurrency
finance1 year ago

Bank of Canada Lowers Rates to 4.75%, First G-7 to Ease Policy

The Bank of Canada has cut its policy interest rate by 25 basis points to 4.75% due to easing inflation and slower economic growth, while continuing quantitative tightening. The central bank remains cautious, monitoring inflation risks and economic indicators closely, and may consider further rate cuts if inflation continues to decline towards the 2% target. The effectiveness of rate hikes in Canada compared to the US is partly attributed to the structure of Canadian mortgages, which more directly impact existing borrowers.

via WOLF STREET|
#bank-of-canada#economy#finance
finance1 year ago

"Key Market Events: ECB Rate Cuts, US Jobs Data, and Global Economic Trends"

Key market events this week include the U.S. non-farm payrolls report, expected to show continued job growth, and the ECB's anticipated rate cut. OPEC+ is likely to extend oil output cuts, while the Bank of Canada is expected to lower rates following slower-than-expected economic growth. Despite recent losses, major U.S. stock indexes ended the month higher, though the Dow transports index signals potential economic slowdown.

via Investing.com|
#bank-of-canada#ecb-rate-decision#finance
world-news1 year ago

"Canadian Women Share Perimenopause Challenges Beyond Hot Flashes"

William Shatner, known for his role as Captain James T. Kirk in Star Trek, has been a prominent figure in popular culture. The Bank of Canada kept its overnight interest rate steady at five per cent but raised its nominal neutral interest rate, providing insight into the central bank's future interest rate direction. Jennifer Crumbley, the mother of Ethan Crumbley, who committed a school shooting in 2021, was sentenced to 10 to 15 years in prison. Hamas leader Ismail Haniyeh's three sons were killed in an Israeli airstrike in Gaza, with Haniyeh accusing Israel of acting in "the spirit of revenge and murder." Philippine President Ferdinand Marcos Jr. expressed horror over an agreement between his predecessor, Rodrigo Duterte, and China that restricts Manila from shipping construction materials to a military outpost in a disputed shoal in the South China Sea.

via Yahoo Canada Shine On|
#bank-of-canada#ismail-haniyeh#jennifer-crumbley
finance1 year ago

"Central Banks Maintain Interest Rates Amid Economic Uncertainty"

The Bank of Canada has decided to maintain its key interest rate at five percent, citing the need for more time before considering a rate cut despite easing inflation and a weakening economy. Enbridge Inc. plans to invest around US$500 million in expanding its business in the U.S., including the growth of its export terminal in Texas and an expansion of its Gray Oak pipeline. Meanwhile, Federal Reserve Chair Jerome Powell reiterated the central bank's cautious approach to cutting interest rates until they are confident in overcoming inflation. Additionally, Canada's pension funds are being urged by top business executives to increase their investments in domestic assets.

via Yahoo Canada Finance|
#bank-of-canada#canadian-economy#enbridge-inc
economy2 years ago

Bank of Canada's Macklem: Rates to Remain Steady as Inflation Targets Approach

The Bank of Canada has diverged from the U.S. Federal Reserve by stating that interest rates will not be lowered anytime soon, despite the Fed suggesting easing could be on the horizon. The Canadian central bank has raised rates twice this year and has kept them unchanged since July. Inflation in Canada has remained above the bank's 2% target, but Governor Tiff Macklem believes it will gradually decline. While money markets expect rate cuts in 2024, Macklem stated that it is too early to discuss cutting rates and that the focus is on whether rates have been raised enough.

via Reuters|
#bank-of-canada#economy#federal-reserve
economy2 years ago

Bank of Canada Holds Interest Rates, Economy Shows Signs of Slowdown

The Bank of Canada has decided to maintain its target for the overnight rate at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. The global economy is slowing down, and inflation has eased further. In Canada, economic growth has stalled, with higher interest rates restraining spending. The labor market is easing, and inflationary pressures are reducing. The Bank remains prepared to raise the policy rate further if needed and is committed to restoring price stability.

via ForexLive|
#bank-of-canada#economic-growth#economy
economy2 years ago

Canadian Inflation Surges, October Rate Hike Expectations Soar

Canada's annual inflation rate rose to 4.0% in August, surpassing expectations of 3.8%, driven by higher gasoline prices, prompting speculation of a potential interest rate hike. The consumer price index also increased by 0.4% on a month-over-month basis. Two of the three core inflation measures rose as well. The annual rate, double the Bank of Canada's 2% target, suggests the central bank may need to raise rates further. Money markets raised bets for an October rate hike to 42% from 23% before the data release. However, some economists believe the chance of a rate hike is low due to a slowing economy and rising unemployment.

via Reuters|
#bank-of-canada#canadian-inflation#economy
economy2 years ago

Rising Canadian Inflation Sparks Rate Hike Speculation

Canada's annual inflation rate rose to 3.3% in July, surpassing expectations and increasing the likelihood of another interest rate hike. The consumer price index increased by 0.6% on a month-over-month basis, higher than forecasted. The rise in inflation was mainly due to a base-year effect in gasoline prices. The Bank of Canada's core measures of underlying inflation remained high. Money markets are now betting on a quarter-percentage-point rate hike in September. However, not all economists believe the stronger-than-expected price data will lead to an immediate hike. The Bank of Canada projected inflation to hover around 3% for about a year before reaching its 2% target by mid-2025.

via Reuters|
#bank-of-canada#canada#consumer-price-index
finance2 years ago

Global Markets React to Central Bank Rate Hikes and Mixed Economic Signals

Asian shares fell after Bank of Canada unexpectedly raised interest rates, fueling concerns that the US Federal Reserve may also remain hawkish when it meets next week. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.48%, while Japan's Nikkei fell 1%. The Bank of Canada's move comes after Australia also hiked interest rates earlier this week. Economists polled by Reuters expect the Fed to not raise rates at its June 13-14 meeting, but a significant minority expects at least one more hike this year.

via Reuters|
#asian-shares#bank-of-canada#federal-reserve
finance2 years ago

Gold Prices Drop as Yields Rise and China Data Disappoints.

Gold and silver prices fell as US yields surged following Bank of Canada's decision to resume its tightening campaign. Non-yielding precious metals tend to perform poorly when higher nominal rates boost returns on competing assets, such as government bonds. The resumption of tightening by the Bank of Canada was a wake-up call for markets, and if the Fed mistakenly employs a similar strategy, it could start hiking again in July and do so in a more aggressive manner. Gold's recent decline seems to be a corrective move within a medium-term uptrend, but the bias could turn bearish very quickly if prices breach the rising trendline that has been guiding the market higher since November of 2022.

via DailyFX|
#bank-of-canada#finance#gold
finance2 years ago

Bank of Canada's Rate Hike Rattles U.S. Stock-Market Investors.

The Bank of Canada surprised traders by delivering a quarter percentage point hike in interest rates, ending a four-month pause, which complicates the picture for US investors who are motivated to get bullish ahead of a Fed pause. The Reserve Bank of Australia on Tuesday delivered a second straight rate hike after having ended a short pause of its own. Investors look for the Federal Reserve to deliver a pause of its own next week, with policy makers expected to leave the fed-funds rate unchanged after hiking it from near zero to 5% to 5.25% in a breakneck series of rate hikes that began in March 2022.

via MarketWatch|
#bank-of-canada#federal-reserve#finance
business2 years ago

Bank of Canada Raises Interest Rates to 22-Year High Amid Inflation and Housing Concerns

The Bank of Canada has raised its overnight rate to a 22-year high of 4.75%, with another increase expected next month to combat an overheating economy and high inflation. The central bank had been on hold since January to assess the impact of previous hikes after raising borrowing costs eight times since March 2022. The Canadian dollar rose 0.4% to 1.3350 to the greenback, with money markets seeing a 60% chance of another rate hike in July and fully priced in further tightening by September. The BoC said it would continue to assess economic indicators going forward to see if they "are consistent with achieving the inflation target."

via Reuters|
#bank-of-canada#business#economy
business2 years ago

Canadian housing market shows signs of recovery in spring.

The recovery of Canada's housing market could delay the Bank of Canada's shift to interest rate cuts, as it could raise inflation. The BoC is relying on slower economic growth to return inflation to its 2% target. The cost of shelter has the highest weighting in Canada's consumer price index, accounting for 30%. Despite higher borrowing costs, mortgage delinquency rates have remained low for now in Canada after mortgage borrowers were put through a stress test showing they could manage if interest rates were 2 percentage points higher than the rate on their loan.

via Reuters|
#bank-of-canada#business#canada
finance2 years ago

Bank of Canada seeks public input on digital currency plans.

The Bank of Canada is seeking public feedback on the potential launch of a national digital currency, citing the diminishing use of cash and potential competition with cryptocurrencies as reasons to prepare for the potential shift. The bank emphasized that even if it eventually launched a national digital currency, it would still issue bank notes for anyone who wants them. The survey is a standard online questionnaire about how Canadians would likely use digital currency, which security features are essential, and their concerns about accessibility and privacy.

via Engadget|
#bank-of-canada#cryptocurrency#digital-currency