The central bank is more likely to bring its overnight rate to between two and three per cent, though not anytime soon, said David Macdonald, senior economist with the Canadian Centre for Policy Alternatives.
The central bank is widely expected to hold rates high in the near term as it seeks to quell inflation. But even once rates begin to fall, economists said ultralow rates aren't in the cards. “One of the points I've been stressing with our clients is, the speed at which rates went up will not be the speed at which they go down.”
“A higher neutral rate means that the current policy rate may not be as restrictive as the thinks,” they wrote.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
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.
Canada facing 'stagflation' risk: former Bank of Canada officialAs the Bank of Canada hints that interest rates may stay at five per cent for some time, a former deputy governor at the central bank says the country’s economy now risks 'stagflation.'
Source: BNNBloomberg - 🏆 83. / 50 Read more »
US consumers keep spending briskly even in the face of persistent inflation and high interest ratesWASHINGTON (AP) — An inflation gauge that is closely monitored by the Federal Reserve showed price increases remained elevated in September amid brisk consumer spending and strong economic growth .
Source: SooToday - 🏆 8. / 85 Read more »
Consumers overestimating how low, and how fast, interest rates will fall: economistsTORONTO — With interest rates likely at or near their peak in Canada, experts say consumers shouldn’t expect rates to return to pre-pandemic levels.
Source: SooToday - 🏆 8. / 85 Read more »
Consumers overestimating how low, and how fast, interest rates will fall: economistsTORONTO — With interest rates likely at or near their peak in Canada, experts say consumers shouldn’t expect rates to return to pre-pandemic levels. The...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Consumers overestimating how low, how fast, interest rates will fall: economistsWith interest rates likely at or near their peak in Canada, experts say consumers shouldn’t expect rates to return to pre-pandemic levels.
Source: CP24 - 🏆 30. / 67 Read more »