The Bank of Canada hiked its key overnight rate by a quarter of a percentage point to a 22-year high of 5.0%, saying it feared that efforts to return inflation to its 2% target could stall amid excess consumer spending
The move to increase borrowing costs by 25 basis points for the second time in as many months was expected by analysts and markets. After a five-month pause, the BoC raised its overnight rate in June, saying monetary policy was not sufficiently restrictive.
Canadian money markets increased bets for another rate increase after the move, seeing an almost 30% probability of another hike at the next policy announcement in September. "Governing Council remains concerned that progress towards the 2% target could stall, jeopardizing the return to price stability," the BoC said in a statement.
"The rebalancing of supply and demand is now expected to happen in early 2024," the BoC said it its report containing new forecasts also released on Wednesday.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
BoC's Macklem: BoC is prepared to raise rates furtherBank of Canada (BoC) Governor Tiff Macklem comments on the policy outlook following the BoC's decision to raise its policy rate by 25 basis points to
Leer más »
BoC's Macklem: Progress to price stability could stall if we are not carefulBank of Canada (BoC) Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers comment on the policy outlook following the BoC's decision to rai
Leer más »
Bank of Canada set to raise interest rates by 25 bps, market eyes future projectionsBoC Interest Rate Decision: 25 bps hike expected, economic projections and Macklem speech eyed – by FXstreetNews BOC SEO CentralBanks Macroeconomics USDCAD
Leer más »
Bank of Canada will hike interest rates one more time: CIBCAndrew Grantham of CIBC Capital Markets talks about how interest rate hikes are affecting the economy and what to expect next. Watch here.
Leer más »
Bank of Canada expected to hike rates as economy outperformsThe Bank of Canada (BoC) on Wednesday is expected to hike its key overnight rate by a quarter of a percentage point to a 22-year high of 5.00% as economic growth continues to fuel a tight labor market and sticky underlying inflation, analysts said.
Leer más »