Kevin Carmichael: Bank of Canada emerges as the trendsetter on interest rates

The “demand” playbook suggests policymakers will be able to put a floor under the downturn by cutting interest rates. But if Boivin is right, and supply issues are the main drivers of inflation, lower interest rates would only make the inflation problem worse by encouraging more demand than providers of goods and services can satiate. “We don’t think there will be aThis advertisement has not loaded yet, but your article continues below.It’s a big idea.

But the Bank of Canada still has lots of room to set monetary policy to suit what’s happening in Canada, and it’s been asserting its independence from the Fed particularly forcefully over the past year while fighting the most dangerous burst of inflation since the early 1980s., redefining the “jumbo” moniker that Bay Street and Wall Street had attached to all the outsized rate increases going on around the world as central bankers chased inflation.

If Canada’s central bank has looked like a follower for much of its history, then it has the appearance of a leader now. Boivin said the Bank of Canada offered the rest of the rich world a “glimpse” of where monetary policy in their countries is headed. The first question caused Macklem a little consternation. Bond prices already suggested that many investors think he’s going to have to cut interest rates before the end of the year to offset the economic downturn that everyone — including the Bank of Canada — knows is coming.

CarmichaelKevin Boooooo sucks

CarmichaelKevin

Loans Loans Latest News, Loans Loans 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, says it will take a 'conditional' pauseOTTAWA — The Bank of Canada delivered what it expects to be its last interest rate hike of the cycle as it pauses to assess the effects of higher rates on the economy.
Source: BurnabyNOW_News - 🏆 14. / 77 Read more »

Rising Bank of Canada interest rates force difficult mortgage payments on Saskatchewan homes | Globalnews.caThe central bank raised its policy rate to 4.5 per cent on Jan. 25, 2023, an increase of 25 basis points and the highest the Bank of Canada’s key rate has been since 2007.
Source: GlobalNational - 🏆 81. / 51 Read more »

Video: Bank of Canada raises interest rates, says it will take a 'conditional' pauseThe Bank of Canada has raised its key interest rate by a quarter of a percentage point and said it expects this to be the last rate hike of the cycle. The rate increase marks the eighth consecutive hike since March as the central bank fights off decades-high inflation.
Source: globeandmail - 🏆 5. / 92 Read more »

Bank of Canada raises rates, says it is likely to pause for now | SaltWireOTTAWA, Jan 25 (Reuters) - The Bank of Canada on Wednesday hiked its benchmark overnight interest rate by 25 basis points to 4.5%, its highest level in 15 ...
Source: SaltWire Network - 🏆 45. / 63 Read more »

Bank of Canada's Macklem says he is 'not even thinking' of cutting ratesOTTAWA — Bank of Canada Governor Tiff Macklem on Wednesday said he was focused on whether interest rates would need to go higher and was not even considering a… Betcha this twit’s not worried about rent or a mortgage renewal
Source: OttawaCitizen - 🏆 21. / 68 Read more »

Bank of Canada hite interest rates againConcordia University Economist, Moshe Lander discusses the bank of Canada's latest interest hike.
Source: CTVNews - 🏆 1. / 99 Read more »