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☆ Trudeau's main rival offers affordable government in first convention speech
▼ + stars: | 2023-09-09 | by ( Fergal Smith | ) www.reuters.com time to read: +3 min

Canada's Conservative Party of Canada leader Pierre Poilievre speaks during Question Period in the House of Commons on Parliament Hill in Ottawa, Ontario, Canada April 19, 2023. "A common-sense Conservative government that frees hardworking people to earn powerful paycheques that buy affordable food, gas and homes in safe neighborhoods," Poilievre said at the convention in Quebec City. In Friday's address, Poilievre promised to balance the federal budget if the Conservatives won the next election. An Angus Reid poll on Thursday showed the Conservatives at 39% public support, with the Liberals on 27%. Additonal reporting by David Ljunggren and Steve Scherer in Ottawa; Editing by Diane CraftOur Standards: The Thomson Reuters Trust Principles.

Persons: Pierre Poilievre, Blair Gable, Justin Trudeau's, Poilievre, Trudeau, Angus Reid, Shachi Kurl, Kurl, it's, Stephen Guilbeault, David Ljunggren, Steve Scherer, Diane Craft Organizations: Canada's Conservative Party of Canada, REUTERS, Conservative Party, Conservative, New Democratic Party, Conservatives, Liberals, Liberal, Federal, Thomson Locations: Ottawa , Ontario, Canada, Quebec City, Ottawa

Canada created 39,900 jobs, Statistics Canada said, compared with a median forecast for a gain of 15,000. The labor market has been resilient even as the Bank of Canada (BoC) raised its key overnight rate 10 times since March 2022 to cool the economy. Money markets see a 44% chance of another BoC rate hike by year-end, up from 36% before the data were published. "This report alone won't make the Bank of Canada regret holding rates steady earlier this week. Derek Holt, vice president of capital markets economics at Scotiabank, noted a gain of 49,500 people in self-employed jobs.

Persons: Carlos Osorio, Andrew Kelvin, Royce Mendes, Derek Holt, Dale Smith, Fergal Smith, Andrea Ricci, Nick Macfie Organizations: Queen, West, REUTERS, Rights, Statistics, Bank of Canada, BoC, TD Securities, Desjardins Group, Canadian, Scotiabank, Thomson Locations: Toronto Ontario, Canada, Statistics Canada, Canadian, Ottawa, Toronto

☆ Canadian dollar rallies as jobs data rekindles rate hike bets
▼ + stars: | 2023-09-08 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

File photo: A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto, January 23, 2015. The loonie was trading 0.4% higher at 1.3620 to the greenback, or 73.42 U.S. cents, after moving in a range of 1.3609 to 1.3689. Money markets see a 44% chance of another BoC rate hike by year-end, up from 36% before the data. The jobs data is "not strong enough to prompt an immediate rethink on the pause, but it's also certainly not soft enough to rule out further hikes", Doug Porter, chief economist at BMO Capital Markets, said in a note. The Canadian 2-year yield rose 3.3 basis points to 4.643%, while the gap between it and its U.S. equivalent narrowed by 5 basis points to 29.5 basis points in favor of the U.S. note.

Persons: Mark Blinch, it's, Doug Porter, Fergal Smith, Mark Heinrich Our Organizations: REUTERS, greenback, Canadian, U.S, Bank of Canada, BoC, BMO Capital Markets, U.S ., Thomson Locations: Toronto, Canada, TORONTO

☆ Canadian dollar outlook seen less rosy as China's economy weakens
▼ + stars: | 2023-09-07 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

File photo: A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto, January 23, 2015. REUTERS/Mark Blinch/file photo Acquire Licensing RightsTORONTO, Sept 7 (Reuters) - Analysts have cut their bullish near-term forecasts for the Canadian dollar as China's economy weakens and the gap between U.S. and Canadian bond yields grows, but still expect the currency to be stronger in a year, a Reuters poll showed. "The loonie has lost a few feathers in recent weeks," said Stefane Marion, chief economist and strategist at National Bank of Canada. "Widening interest rate differentials with the U.S. and weaker commodity prices due to a slowing Chinese economy are keeping the CAD in check." Canada is a major producer of commodities, so the loonie tends to be sensitive to the global growth outlook.

Persons: Mark Blinch, Stefane Marion, Marion, Fergal Smith, Sujith Pai, Devayani, Pranoy, Jan Harvey Organizations: REUTERS, Rights, National Bank of Canada, U.S, Bank of Canada, Thomson Locations: Toronto, Canada, U.S

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. The central bank hiked rates by a quarter point in both June and July in a bid to tame stubbornly high inflation, which has remained above the bank's 2% target for 27 months. Bank of Canada Governor Tiff Macklem will deliver a speech and hold a press conference to discuss the decision on Thursday. Reuters GraphicsLiberal Prime Minister Justin Trudeau's support has sagged amid high inflation as his Conservative rival, Pierre Poilievre, hammered him for fueling inflation with government spending and driving up rates during a housing crisis. "The Bank of Canada's decision to maintain its overnight interest rate is welcome relief for Canadians," Finance Minister Chrystia Freeland said in a statement.

Persons: Blair Gable, Doug Porter, Andrew Kelvin, Justin Trudeau's, Pierre Poilievre, Chrystia Freeland, Steve Scherer, David Ljunggren, Fergal Smith, Ismail Shakil, Divya Rajagopal, Nivedita Balu, Mark Porter Organizations: Canada, REUTERS, Rights, Bank of Canada, Wednesday, Governing, BoC, BMO Capital Markets, Canadian, Reuters, TD Securities, Reuters Graphics Liberal, Conservative, Finance, Thomson Locations: Ottawa , Ontario, Canada

The second-quarter reading was far lower than the Bank of Canada's (BoC's) forecast for a 1.5% annualized GDP growth as well as the 1.2% gain expected by analysts. The quarterly slowdown was largely due to declines in housing investment and smaller inventory accumulation as well as slower international exports and household spending, Statistics Canada said. The central bank hiked its benchmark overnight rate to a 22-year-high of 5.0% in July, the tenth increase since March of last year. The high interest rate environment has coincided with falling housing investment, which recorded its fifth consecutive quarterly decrease in the three months ended in June. The housing investment decline was led by a sharp drop in new construction as well as a fall in renovation activities, Statscan said.

Persons: Stephen Brown, Andrew Kelvin, Statscan, downwardly, Doug Porter, Ismail Shakil, Steve Scherer, Dale Smith, Fergal Smith, Nivedita Balu, Mark Porter Organizations: Bank of Canada's, North, Capital Economics, Bank of Canada, Statistics, BoC, Reuters, TD Securities, Money, Canadian, BMO Capital Markets, Thomson Locations: OTTAWA, North American, Statistics Canada, Canada

☆ Canadian dollar posts biggest loss in 1 month as economy shrinks
▼ + stars: | 2023-09-01 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

[1/2] A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015. The loonie was trading 0.6% lower at 1.3595 to the U.S. dollar, or 73.56 U.S. cents, its biggest decline since Aug. 1. "The Bank of Canada's job is done," said Adam Button, chief currency analyst at ForexLive. "The Canadian dollar is selling off because the debate will quickly shift to when rate cuts are coming. Separate data showed that the contraction in Canada's manufacturing sector gathered pace in August.

Persons: Mark Blinch, Adam Button, It's, Fergal Smith, Frances Kerry, Alison Williams Organizations: REUTERS, greenback, Canadian, U.S, of Canada, U.S ., Thomson Locations: Toronto, TORONTO, Canada

☆ Canadian dollar posts biggest monthly decline since February
▼ + stars: | 2023-08-31 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015. The loonie was trading 0.1% higher at 1.3515 to the greenback, or 73.99 U.S. cents, after moving in a range of 1.3505 to 1.3557. For the month, the currency lost 2.4%, its biggest monthly decline since February. "The laggards (in August) among G10 currencies are predominantly the commodity complex," said Michael Goshko, senior market analyst at Convera Canada. Canadian government bond yields were mixed across the curve, with the 10-year down 1 basis point at 3.566%.

Persons: Mark Blinch, Michael Goshko, Fergal Smith, Grant McCool Organizations: REUTERS, greenback, U.S, Convera, New Zealand, Bank of Canada, Thomson Locations: Toronto, TORONTO, China, Norwegian, Canadian

☆ Canadian economy set to show marked slowdown in second quarter, giving central bank cause to pause
▼ + stars: | 2023-08-27 | by ( Fergal Smith | ) www.reuters.com time to read: +3 min

[1/2] Condominium and office towers are seen on the mountain-backed skyline of Vancouver, British Columbia, Canada September 30, 2020. The GDP report will be the last major piece of domestic data before the Canadian central bank makes its next policy decision on Sept. 6. The central bank has said it would study economic data closely before determining whether it raises interest rates further. The BoC has projected 1.5% growth for the third quarter, matching its second-quarter estimate. Some argue that the composition of growth in the second-quarter data, including the split between internal and external demand, could also be a consideration.

Persons: Jennifer Gauthier, Carlos Capistran, Bank of America Merrill Lynch, Benjamin Reitzes, we've, Stephen Brown, Andrew Grantham, Fergal Smith, Denny Thomas, Jonathan Oatis Organizations: REUTERS, Rights, Bank of Canada, BoC, Bank of America, BMO Capital Markets, Money, North, Capital Economics, CIBC Capital Markets, Thomson Locations: Vancouver , British Columbia, Canada, Canadian, Mexico, North America

☆ TSX ends lower as tech falls, investors weigh bank earnings
▼ + stars: | 2023-08-24 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended down 103.96 points, or 0.5%, at 19,775.83, giving back some of the previous day's rally. "Considering the softness on the U.S. side, the Canadian market held up well," said Lorne Steinberg, president, Lorne Steinberg Wealth Management Inc. Shares of Toronto-Dominion Bank (TD.TO) were down 3.2% after the bank missed analysts' estimates for quarterly profit. But Royal Bank of Canada (RY.TO) shares ended 2% higher as it beat estimates, helped by cost cutting measures.

Persons: Chris Helgren, Jerome Powell's, Lorne Steinberg, Steinberg, Fergal Smith, Siddarth, Marguerita Choy, Shweta Agarwal Organizations: Toronto Stock Exchange, REUTERS, Tech, RBC, Toronto Stock, Federal, Lorne Steinberg Wealth Management Inc, Dominion Bank, Royal Bank of Canada, Thomson Locations: Toronto , Ontario, Canada, U.S, Toronto, Bengaluru

As of January 2023, residential mortgage debt stood at C$2.08 trillion ($1.53 trillion), according to the Canada Mortgage and Housing Corporation (CMHC). Mortgage rates tend to track moves in the bond market with a lag. At 6.79%, the five-year mortgage rate posted by major Canadian banks has climbed to its highest since November 2008, data from the Bank of Canada shows. When it is time for renewal, options for homeowners hoping to shop for better interest rates might be limited as they would have to re-qualify for the stress test at the latest interest rates with their new lender. "It certainly is going to be problematic for the Canadian economy if rates stay at this level."

Persons: that's, James Laird, Laird, Daniel Foch, Foch, Stephen Brown, Nivedita Balu, Fergal Smith, Denny Thomas, Jonathan Oatis Organizations: TORONTO, Bank of Canada, Canada Mortgage, Housing Corporation, Ratehub.ca, Bank of, Toronto Regional Real Estate Board, Greater Toronto Area, Reuters, North, Capital Economics, Thomson Locations: United States, Toronto, Greater Toronto, Canada, North America

☆ TSX hits a 2-month low as dividend-paying stocks fall
▼ + stars: | 2023-08-21 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended down 33.52 points, or 0.2%, at 19,784.87, its lowest closing level since June 27. "Interest rates continue to climb, which is something negative for the TSX which is littered with dividend payers," said Barry Schwartz, a portfolio manager at Baskin Financial Services. Stocks paying high dividends dominate the real estate, utilities and financials sectors. Shares of Restaurant Brands International (QSR.TO) gained 0.9% after J.P.Morgan initiated coverage on the stock with an "overweight" rating.

Persons: Chris Helgren, Barry Schwartz, Stocks, Fergal Smith, Shubham Batra, Shashwat Chauhan, Shilpi Majumdar, Deepa Babington Organizations: Toronto Stock Exchange, REUTERS, Energy, Toronto Stock, TSX, Baskin Financial Services, Bank of Canada, Technology, Restaurant Brands, Thomson Locations: Toronto , Ontario, Canada, Real, Toronto, Bengaluru

☆ Canada unexpectedly sheds jobs in July, central bank seen pausing hikes
▼ + stars: | 2023-08-04 | by ( Ismail Shakil | ) www.reuters.com time to read: +3 min

Money markets see a 28% chance of a rate hike in September, down slightly from 32% before the data. Money markets see a 60% chance of another rate hike by the end of the year, down from 80% before the data. "I think their (the Bank's) conclusion from this would be that it's probably not a bad idea to pause on the rate hike front," he said by phone. While headline figures indicated some slowness, the average hourly wage for permanent employees - a figure the Bank of Canada watches closely - rose 5.0% from July 2022. "The softer labor market data support our view that the Bank is unlikely to follow through with current market pricing by raising rates further," he said.

Persons: Chris Helgren, Doug Porter, Royce Mendes, Stephen Brown, Statscan, David Ljunggren, Dale Smith, Fergal Smith, Jonathan Oatis, Nick Zieminski Organizations: REUTERS, OTTAWA, Bank of Canada, Reuters, Statistics, The, BMO Capital Markets, U.S ., Desjardins, North, Capital Economics, Thomson Locations: Toronto , Ontario, Canada, Canadian, Statistics Canada, North America, Ottawa, Toronto

☆ Canadian dollar hits 2-month low after surprise jobs loss
▼ + stars: | 2023-08-04 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015. For the week, the risk-sensitive currency was down 0.9%, its third straight weekly decline, as a jump in long-term bond yields rattled equity market investors. The Canadian economy shed 6,400 jobs in July, missing estimates for a gain of 21,100, while the jobless rate ticked up to 5.5%. Money markets see chances of another Bank of Canada rate hike this year at about 50%, down from 80% before the jobs report. Canadian government bond yields fell across the curve.

Persons: Mark Blinch, Jay Zhao, Murray, Fergal Smith, Grant McCool Organizations: REUTERS, greenback, Canadian, U.S, Bank of Canada, Monex Canada, Canada, U.S ., Thomson Locations: Toronto, TORONTO

☆ TSX starts month on weak note as China slowdown hits sentiment
▼ + stars: | 2023-08-01 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended down 93.71 points, or 0.5%, at 20,532.93, after posting its highest closing level in three months in the previous session. The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.8% as gold and copper prices fell. Shares of Silvercrest Metals (SIL.TO) were particularly weak, plunging 21.5% after two brokerages cut their price target on the stock. The TSX notched a gain of 2.3% in July, while it has advanced 5.9% since the start of the year.

Persons: Mark Blinch, Robert McWhirter, Fergal Smith, Siddarth, Shilpi Majumdar, Cynthia Osterman Organizations: Toronto Stock Exchange, REUTERS, Metals, Toronto Stock, Selective Asset Management Inc, Canada's, Silvercrest Metals, TSX, Thomson Locations: Toronto, China, Coast, Bengaluru

☆ C$ hits 3-week low as 'cracks' emerge in Canada's economy
▼ + stars: | 2023-08-01 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

A Canadian dollar coin, commonly known as the "Loonie," is pictured in this illustration picture taken in Toronto, January 23, 2015. "The (U.S.) dollar is reasserting itself as the champion of the currency market and the Canadian dollar is just caught in that wave," said Adam Button, chief currency analyst at ForexLive. S&P Global's measure of Canadian manufacturing activity edged higher last month to 49.6 from 48.8 in June. Canada's employment report for July, due on Friday, could offer further clues on the strength of domestic activity. The price of oil, one of Canada's major exports, edged lower on signs of profit-taking after a rally in July.

Persons: Mark Blinch, Adam Button, Fergal Smith, Jonathan Oatis Organizations: REUTERS, greenback, PMI, Canadian, U.S, ., Thomson Locations: Toronto, TORONTO, U.S

☆ Canadian factory activity slows for third straight month in July
▼ + stars: | 2023-08-01 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

[1/2] Factory workers operate machine presses at Abipa Canada in Boisbriand, Quebec, Canada May 10, 2023. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 49.6 in July from 48.8 in June. "July's PMI results offered a rather mixed bag on the performance of the Canadian manufacturing sector," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. The new orders index, at 49.2, was in contraction for the fifth straight month, although up from 48.5 in June. The port strikes and wildfires limited the improvement in vendor performance, S&P Global said.

Persons: Evan Buhler, Paul Smith, Fergal Smith, Paul Simao Organizations: Canada, REUTERS, Reuters Connect TORONTO, P Global Canada Manufacturing, PMI, P Global Market Intelligence, Bank of Canada, Canada's, P Global, Thomson Locations: Boisbriand, Quebec, Canada, United States

☆ Canadian dollar hits 2-week low as rate hikes 'begin to bite'
▼ + stars: | 2023-07-28 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

The loonie was trading 0.1% lower at 1.3240 to the greenback, or 75.53 U.S. cents, after touching its weakest intraday level since July 11 at 1.3249. The data suggests "that underlying momentum is weakening as higher borrowing costs begin to bite," Karl Schamotta, chief market strategist at Corpay, said in a note. Hopes of a soft landing for the U.S. economy boosted Wall Street and the price of oil, one of Canada's major exports. The 10-year was down 8.1 basis points at 3.536%, while it dropped 4.1 basis points further below the U.S. equivalent to a gap of 43.6 basis points. Reporting by Fergal Smith Editing by Alistair BellOur Standards: The Thomson Reuters Trust Principles.

Persons: Karl Schamotta, Fergal Smith, Alistair Bell Organizations: greenback, U.S, Bank, Federal Reserve, Thomson Locations: TORONTO, U.S

☆ Rate convergence keeps Canadian dollar shackled to U.S. counterpart
▼ + stars: | 2023-07-27 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

Money markets are pricing in a peak interest rate of about 5.25% for the Bank of Canada over the coming months, not much less than the 5.42% terminal rate that is priced in for the Fed. Canadian GDP data for May, due on Friday, could guide expectations for additional BoC rate hikes. The Canadian dollar was trading 0.2% lower at 1.3227 to the greenback, or 75.60 U.S. cents, after moving in a range of 1.3159 to 1.3236. "The Canadian dollar still looks cheap relative to where it should be," Osborne said, pointing to recent convergence of Canadian and U.S. yields, improved risk appetite and higher commodity prices. The Canadian 5-year yield touched its highest since December 2007 at 4.030% before dipping to 4.019%, up 13.9 basis points on the day.

Persons: Price, Shaun Osborne, Osborne, Fergal Smith, Nick Zieminski Organizations: greenback, Canadian, Bank of Canada, Federal Reserve, European Central Bank, Scotiabank, Fed, BoC, Thomson Locations: TORONTO, U.S

☆ Analysis: Is Canadian core inflation about to crack? July data could offer hope
▼ + stars: | 2023-07-25 | by ( Fergal Smith | ) www.reuters.com time to read: +3 min

The monthly increases for both measures have been 0.3% or less in seven of the last eight months. The BoC, which will release minutes from its July meeting on Wednesday, has said it doesn't want to tighten more than is needed. Canadians are particularly sensitive to higher borrowing costs after loading up on debt in recent years as house prices soared. The July inflation data is due for release on Aug. 15. Reporting by Fergal Smith; Editing by Denny Thomas and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

Persons: Benjamin Reitzes, Reitzes, Royce Mendes, Mendes, Fergal Smith, Denny Thomas, Jonathan Oatis Organizations: TORONTO, Bank, Canada's, BoC, BMO Capital Markets, Reuters Graphics Reuters, Bank of Canada, Desjardins, Thomson Locations: Helpfully

☆ Canadian housing starts jump 41% in June - CMHC
▼ + stars: | 2023-07-18 | by ( ) www.reuters.com time to read: 1 min

TORONTO, July 18 (Reuters) - Canadian housing starts rose 41% in June compared with the previous month, the largest increase in the last 10 years, led by groundbreaking on multiple unit urban homes, data from the national housing agency showed on Tuesday. The seasonally adjusted annualized rate of housing starts rose to 281,373 units in June from a revised 200,018 units in May, the Canadian Mortgage and Housing Corporation (CMHC) said. Economists in a Reuters poll had expected starts to increase to 220,000 in June. Reporting by Fergal Smith; Editing by Andrew HeavensOur Standards: The Thomson Reuters Trust Principles.

Persons: Fergal Smith, Andrew Heavens Organizations: TORONTO, Canadian Mortgage and Housing Corporation, Thomson

OTTAWA, July 18 (Reuters) - Canada's annual inflation rate dropped more than expected to a 27-month low of 2.8% in June, data showed on Tuesday, led by lower energy prices while food and shelter cost increases persisted. Month-over-month, the consumer price index was up 0.1%, Statistics Canada said, which was also lower than the 0.3% forecast. "Inflation is definitely moving in the right direction, but we're seeing stickier and more persistent core measures," said Michael Greenberg, senior vice president and portfolio manager at Franklin Templeton Investment Solutions. The average of two of the Bank of Canada's (BoC) core measures of underlying inflation, CPI-median and CPI-trim, came in at 3.8% compared with 3.9% in May. "The Bank of Canada's preferred measures of core inflation, which exclude significant moves in individual categories, show that underlying price pressures remain sticky," said Royce Mendes, head of macro strategy at Desjardins Group.

Persons: stickier, Michael Greenberg, Royce Mendes, Mendes, We're, Jules Boudreau, Ismail Shakil, Steve Scherer, Fergal Smith, Nivedita Balu, Dale Smith, Will Dunham, Alexandra Hudson Organizations: OTTAWA, Reuters, Statistics, Bank of Canada's, Franklin Templeton Investment Solutions, Canada's, Desjardins Group, The Bank of Canada, Mackenzie Investments, Canadian, Alexandra Hudson Our, Thomson Locations: Statistics Canada, Mackenzie, China, Ottawa, Toronto

Macklem came under a rare attack last year from opposition politicians for misjudging inflation and locking in to a rigid forward guidance. "We are turning the corner on inflation," Macklem told reporters in January when the BoC became the first major central bank to announce a pause. The central bank's tightening campaign is a major concern for Canadians who loaded up on cheap mortgages and took on credit card and other debt in recent years. "Now maybe you're getting a certain maturity of the central bank that says, 'We're not going to do that again,'" Holt said. He assured Canadians during the pandemic that rates would rise only in 2023 when it expected the economic slack to be absorbed, but the central bank began hiking rates in March 2022 as inflation spiked.

Persons: Derek Holt, Macklem, Holt, Marc Chandler, Steve Scherer, Fergal Smith, Denny Thomas, Matthew Lewis Organizations: OTTAWA, Bank of Canada, BoC, Scotiabank ., Canadian Real Estate Association, Bannockburn Global Forex, Thomson Locations: Bannockburn, Ottawa, Toronto

After a five-month pause, the BoC raised its overnight rate in June, saying monetary policy was not sufficiently restrictive. "If new information suggests we need to do more, we are prepared to increase our policy rate further," BoC Governor Tiff Macklem told reporters after the decision. The BoC's overnight target rate was last at 5.00% in March and April of 2001. Twenty of 24 economists surveyed by Reuters had expected the central bank to lift rates by a quarter of a percentage point. Money markets had seen a more than a 70% chance of a rate hike before the announcement.

Persons: Derek Holt, Andrew Kelvin, Steve Scherer, Ismail Shakil, Fergal Smith, Divya Rajogopal, Nivedita Balu, Paul Simao, Mark Porter Organizations: OTTAWA, Bank of Canada, Wednesday, BoC, Scotiabank, Reuters, TD Securities, Thomson Locations: Canada, Toronto

☆ 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

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