DIRS.INFO The most relevant business & tech news

With the economy stumbling along slower than the Bank of Canada forecast just last week, analysts said there is no need to raise rates again from 5.0%, a 22-year high. July GDP was revised to being marginally negative from an initial report of zero growth, Statistics Canada said. This data reaffirms our view that the Bank of Canada is done raising rates for this cycle," Figueiredo said. The central bank has said its previous rate hikes are sinking in. The projected contraction in third-quarter annualized growth is far lower than the Bank of Canada (BoC) forecast last week.

Persons: Chris Helgren, Tiago Figueiredo, Figueiredo, Macklem, Benjamin Reitzes, Reitzes, Ismail Shakil, Steve Scherer, Dale Smith, Jonathan Oatis Organizations: Roberts Bank, REUTERS, Rights OTTAWA, Bank of Canada, Canadian, Reuters, Statistics, BoC, BMO Capital Markets, Thomson Locations: Delta, British Columbia, Canada, Canadian, Statistics Canada, Ottawa

Bank of Canada Governor Tiff Macklem takes part in a news conference after announcing an interest rate decision in Ottawa, Ontario, Canada April 12, 2023. REUTERS/Blair Gable/File Photo Acquire Licensing RightsOTTAWA, Sept 6 (Reuters) - The Bank of Canada on Wednesday is expected to keep rates on hold at a 22-year high of 5% after the economy unexpectedly shrank in the second quarter, analysts said. While the economy turned negative in the second quarter, inflation has been stubborn, unexpectedly rising to 3.3% in July as core measures remained well above 3%. Canada's Liberal Prime Minister Justin Trudeau's support has sagged amid high inflation as his Conservative rival, Pierre Poilievre, hammered him for feeding inflation with government spending and driving up rates during a housing crisis. But core inflation measures are inching down slowly, and a wealth of data is due out before the bank next meets to discuss rates in October.

Persons: Blair Gable, Derek Holt, Justin Trudeau's, Pierre Poilievre, Tiago Figueiredo, Holt, Steve Scherer, Mark Porter Organizations: Canada, REUTERS, Rights, Bank of Canada, of Canada, Scotiabank, Canada's Liberal, Conservative, Bank of Canada's, Desjardins Group, Reuters, BoC, Thomson Locations: Ottawa , Ontario, Canada

Analysts polled by Reuters had forecast inflation would rise to 3.0% from the 27-month low of 2.8% recorded in June. Money markets increased bets for a quarter-percentage-point rate hike in September. They saw a 35% probability immediately after the release of the inflation data, up from 22% beforehand, and then settled back to a 31% chance. Not all economists thought the stronger-than-expected price data would tip the scales toward a hike as soon as its next meeting in September. The Bank of Canada, after its last rate hike in July, said it would study data closely before moving again.

Persons: Carlos Osorio, Statscan, Derek Holt, Tiago Figueiredo, Jules Boudreau, Ismail Shakil, Steve Scherer, Dale Smith, Paul Simao, Jonathan Oatis Organizations: REUTERS, OTTAWA, Reuters, Statistics, Bank of, Scotiabank, Canadian, Bank of Canada, Desjardins Group, Mackenzie Investments, Thomson Locations: Toronto , Ontario, Canada, Statistics Canada, Mackenzie, Ottawa

☆ Bank of Canada expected to hike rates as economy outperforms
▼ + stars: | 2023-07-12 | by ( Steve Scherer | ) www.reuters.com time to read: +2 min

"We expect the Bank of Canada to raise its policy rate to 5.00% and leave the door open to more hikes this fall." Twenty of 24 economists surveyed by Reuters expect the central bank to lift rates by another quarter of a percentage point and then hold them there well into 2024. Money markets see more than a 70% chance of a rate hike on Wednesday, and are fully pricing in such a move by September. Canada added far more jobs than expected in June, according to data published on Friday. "And let's face it, inflation is still above the Bank of Canada's 2% target."

Persons: Royce Mendes, Tiago Figueiredo, Doug Porter, Porter, Steve Scherer, Fergal Smith, Paul Simao Organizations: OTTAWA, Bank of Canada, BoC, Bank of Canada's, Group, Reuters, BMO Capital Markets, Thomson Locations: Canadian, Canada

OTTAWA, June 30 (Reuters) - Canada's economy regained momentum in May after stalling in April, Statistics Canada data showed on Friday, leaving the door open for the Bank of Canada to hike interest rates in July. The economy was unchanged in April from March, missing forecasts, in what economists said was the fallout from a federal civil servant strike in April. Canada's goods-producing sector expanded 0.1% in April, but were offset by a slight decline in the service-producing sector. Figueiredo expects the central bank to raise interest rate by another 0.25% in July. Money markets see a roughly 61% chance of the central bank hiking rates in July.

Persons: Statscan, it's, Doug Porter, Desjardins, Tiago Figueiredo, Figueiredo, Ismail Shakil, Nivedita Balu, Dale Smith, Jonathan Oatis, Philippa Fletcher Organizations: OTTAWA, Statistics, Bank of Canada, Reuters, BMO Capital Markets, Public Service Alliance of Canada, Toronto Stock, Canadian, Thomson Locations: Statistics Canada, Ottawa, Toronto

☆ Bank of Canada seen leaving rates unchanged as growth stalls
▼ + stars: | 2023-03-08 | by ( Steve Scherer | ) www.reuters.com time to read: +3 min

[1/2] Bank of Canada Governor Tiff Macklem holds a news conference at the Bank of Canada, amid the coronavirus disease (COVID-19) outbreak, in Ottawa, Canada, June 22, 2020. "We expect the Bank of Canada to be the first G10 central bank to hold rates," said Jay Zhao-Murray, a forex analyst at Monex Canada. Money markets expect the policy rate to be left on hold on Wednesday but are pricing in another tightening by September. "Look for the Bank of Canada to point to slowing GDP growth and inflation when justifying its decision to maintain the level of rates," said Royce Mendes and Tiago Figueiredo, Desjardins economists, in a note. "The central bank is unlikely to do much to endorse the view that further rate hikes will be necessary," they said.

Search resuls for: "Tiago Figueiredo"

6 mentions found