HomeEconomyBank of Canada likely to hike rates further if inflation tops 2%... Economy Bank of Canada likely to hike rates further if inflation tops 2% – Macklem By inew May 4, 2023 0 41 views Share FacebookTwitterPinterestWhatsApp JPM -1.% Add/Remove from Watchlist Add to watch list ADD JOB Location successfully added to: Please name your portfolio type: purchase Sell date: quantity: price Point value: Leverage: 1:1 1: 1: 1: 1: 1: 1: 10 1:25 1 : 46 Committee: 20751 CREATE NEW WATCHLIST CREATE 2008 2024 Create a new holding portfolio Add Create 2024 + Add another position to close 100 FRCB -.% 500 Add/Remove from Watchlist to watch list Location added successfully: Please name your portfolio type: purchase Sell date: quantity: price Point value: Leverage: 1:1 1: 1: 1 : 1: By Steve Scherer and David Ljunggren OTTAWA (Reuters) – Canadian inflation risks well above the Bank of Canada’s 2 percent target, If that happens, the central bank is ready to hike rates further, Governor Tiff Macklem said on Thursday. The Bank of Canada left its key overnight rate unchanged at 4 bps last month. %, but said interest rates may need to remain high for some time due to wage pressures from a tight labor market and sticky service prices. The bank’s baseline scenario is for the labor market to soften as growth slows, with wage pressures and corporate pricing behavior easing, Macklem said. “But there is a risk that these adjustments will take longer or stall, with inflation well above the 2% target, Macklem told the Toronto Regional Council of Trade. If the bank sees signs of inflation exceeding 2 percent, “we are ready to raise rates further,” he said. “We’re not really thinking about rate cuts,” Macklem said later in response to questions from the audience. After raising rates eight times in a row, the bank said in January that it would pause tightening if inflation fell as expected and would not do it again hike. But at last month’s policy-setting meeting, the bank considered an increase amid continued tightness in the labor market and stronger-than-expected growth. It decided to hold off on gathering more evidence on the impact of previous rate hikes. The bank expects inflation to slow to a modest 3% growth rate this summer, even as the economy continues to grow, before slowly falling to 2% by the end of the year. %-200, McCollum said. Inflation slowed to 4.3% in March, slowest growth rate since months, peaking at 8.1% last year. While much of McCallum’s speech focused on monetary policy and price stability, he also addressed the risks of recent U.S. and European financial instability could spread. So far, Macklem said market stress has had a “weak” impact on Canada, but added that “if financial stress reemerges globally and proves to be more Generally, the spillover effects to Canada may be more significant.” This week’s supervision The agency seized 20751 First Republic Bank (OTC: 27FRCB ) and sold its assets to JPMorgan Chase & Co. (NYSE: JPM), in a solution from In the largest U.S. bank deal since the collapse financial crisis. “Should there be more severe stress in (Canada), we have the tools to provide liquidity while we continue to work to restore price stability,” McCollum said. 52 Share FacebookTwitterPinterestWhatsApp Previous articleStriking writer impersonates 'Wednesday' star Jenna OrtegaNext articleCoinbase And Ripple CLOs Meet, Will XRP Listing Follow? inewhttps://inew.news RELATED ARTICLES Economy Boris Johnson hands COVID-era WhatsApps to UK government amid inquiry row May 31, 2023 Economy Without action on jobs, low-income countries will fall behind – ILO May 31, 2023 Economy China VC funding set for weakest first half in 8 years May 31, 2023 LEAVE A REPLY Cancel reply Comment: Please enter your comment! Name:* Please enter your name here Email:* You have entered an incorrect email address! 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