There are several factors to keep an eye on in 2023 that may not only stop central banks from raising interest rates further, but lead them to cut rates sooner than the consensus
. Get exclusive investment industry news and insights, the week’s top headlines, and what you and your clients need to know.
A major one is dramatically declining inflation. Although inflation is viewed, generally, as a negative economic outcome, persistently low inflation, or deflation, can also be concerning. That’s because it can lead to lower economic growth and a falling standard of living. Slow economic growth is another reason the Fed and BoC may pivot this year. Economic growth is an essential indicator of an economy’s health. If economic growth slows, they may cut rates to stimulate demand and support economic activity.
This relationship, known as the Phillips curve, posits that unemployment and inflation have an inverse relationship. So, as unemployment decreases, inflation increases, and vice-versa. Central banks and strategists on Wall and Bay Streets assume, incorrectly, that low unemployment and growth in the private sector led to the spike in inflation. There are several reasons why this may be the case:
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.
Brandon Moreno Calls for UFC Pay-Per-View in Mexico City in 2023Brandon Moreno was once the first Mexican born champion in UFC history, and now that he’s back on top of the flyweight division, he envisions big things in store for fighters from his home country in 2023.
Read more »
'JOY IS TRUE JOY': Toronto's first 2023 murder victim rememberedToronto’s first murder victim of 2023 will receive the Compassion Award from the Immigrant Women in Business organization.
Read more »
Ottawa police look to draft 2023 budget with 2.5 per cent increaseThe Ottawa Police Services Board meeting on Monday will include debate on the 2023 budget and the hiring of two new deputy chiefs.
Read more »
Canadian discount grocers to outperform conventional stores in 2023 amid surging inflation: reportThe DBRS Morningstar commentary says consumer efforts to curtail spending will encourage more home cooking, which benefits the grocery industry in general as people forgo restaurant dining to cut costs
Read more »
Posthaste: These three provinces are expected to feel the most pain as recession loomsOnt. is the only province where RBC expects the economy to actually shrink in the coming year, forecasting a 0.1% dip in real GDP for 2023
Read more »
2023 Power 50 EventWe're 10 days away from our 2023 Power 50 event and it's already 90% sold out. If you're waiting to get your ticket, DON'T. Act now and grab your ticket before they're all gone!
Read more »