The Bank of Canada raised its key interest rate by 25 basis points on Wednesday to 4.5%. Read the central bank\u0027s official statement here.
Global inflation remains high and broad-based. Inflation is coming down in many countries, largely reflecting lower energy prices as well as improvements in global supply chains. In the United States and Europe, economies are slowing but proving more resilient than was expected at the time of the Bank’s October Monetary Policy Report . China’s abrupt lifting of COVID-19 restrictions has prompted an upward revision to the growth forecast for China and poses an upside risk to commodity prices.
In Canada, recent economic growth has been stronger than expected and the economy remains in excess demand. Labour markets are still tight: the unemployment rate is near historic lows and businesses are reporting ongoing difficulty finding workers. However, there is growing evidence that restrictive monetary policy is slowing activity, especially household spending. Consumption growth has moderated from the first half of 2022 and housing market activity has declined substantially.
Inflation has declined from 8.1 per cent in June to 6.3 per cent in December, reflecting lower gasoline prices and, more recently, moderating prices for durable goods. Despite this progress, Canadians are still feeling the hardship of high inflation in their essential household expenses, with persistent price increases for food and shelter. Short-term inflation expectations remain elevated.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of Canada raises interest rates: Read the official statementThe Bank of Canada raised its key interest rate by 25 basis points on Wednesday to 4.5%. Read the central bank\u0027s official statement here.
Read more »
Bank of Canada to release policy meeting minutes for first time in its historyThe Bank of Canada will release meeting minutes of interest rate deliberations after its governor promised more transparency. Read on.
Read more »
Former Bank of Canada senior deputy governor to brief Trudeau cabinetJustin Trudeau and his ministers gathered in Hamilton, Ont. on Monday for a three-day cabinet retreat ahead of Parliament’s return next week
Read more »
Canadian dollar steadies as traders shirk risk ahead of Bank of Canada rate decisionCanadian dollar pulls back from 10-day high ahead of central bank’s rate decision
Read more »
Why the Bank of Canada should hike interest rates this weekJob and inflation numbers indicate a soft landing is within reach but policymakers should resist the temptation to relax restraint. Read on.
Read more »
Posthaste: What another Bank of Canada hike would mean to borrowers and the housing marketBank of Canada is expected to raise interest rates again. What does this mean to Canadian borrowers and the housing market. Find out
Read more »