Found 2 blog entries tagged as rate announcement.

The Bank of Canada held its overnight rate steady this morning at 2.25%. In the statement accompanying the decision, the Bank noted that the Canadian economy will likely continue to be challenged over the next year by trade volatility, but it expects underlying domestic demand to firm up in 2026.

On inflation, the Bank expects CPI inflation to remain close to its 2% target, though it still assesses underlying or core inflation at closer to 2.5%. Overall, the Bank judges the current level of its policy rate to be the right level to keep inflation at its target while helping the economy adjust to the current period of global trade upheaval.

The complexities of global trade tensions still mean some downward pressure on growth coupled with potential…

168 Views, 0 Comments

Read Full Post

The Bank of Canada held its overnight policy rate at 2.75 per cent this morning. In the statement accompanying the decision, the Bank noted US trade policy continues to create uncertainty in the global economy and that uncertainty is likely to slow economic growth in coming quarters.

On inflation, the Bank cited stronger than expected inflation in April and survey data showing household inflation expectations rising due to tariffs as concerning trends in the evolution of inflationary pressures.

While we know with a high degree of certainty that trade wars are stagflationary – they slow growth and raise prices – what we don't know yet is how severe a trade war may be or even if it will end up materializing at all.

The immediate impact of that…

790 Views, 0 Comments

Read Full Post