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☆ Bank of Canada says rates may now be at peak, excess demand now gone
▼ + stars: | 2023-11-22 | by ( ) www.reuters.com time to read: +3 min

Governor of the Bank of Canada Tiff Macklem walks outside the Bank of Canada building in Ottawa, Ontario, Canada June 22, 2020. The Bank of Canada (BoC) - seeking to control soaring inflation - hiked rates 10 times between March of last year and July 2023, pushing them up to a 22-year high of 5.00%. "Higher interest rates are squeezing many Canadians, but these rates are relieving price pressures," Macklem said. "To return to low inflation and stable growth in the years ahead, we need these higher interest rates and slow growth in the short term," he added. Some 60% of mortgage holders have yet to renew their home loans at higher rates, the BoC says.

Persons: Blair Gable, Steve Scherer, David Ljunggren OTTAWA, Macklem, David Ljunggren Organizations: Bank of Canada, REUTERS, BoC, Saint, Saint John Region Chamber of Commerce, CBC, Reuters, Thomson Locations: Ottawa , Ontario, Canada, Saint John, Atlantic, New Brunswick, Reuters Ottawa

☆ Bank of Canada: era of very low rates is likely over, people and firms must adjust
▼ + stars: | 2023-11-09 | by ( ) www.reuters.com time to read: +2 min

Senior Deputy Governor of the Bank of Canada Carolyn Rogers takes part in a news conference, announcing an interest rate decision in Ottawa, Ontario, Canada January 25, 2023. Rogers said she wanted "to stress the importance of adjusting proactively to a future where interest rates may be higher than they've been over the past 15 years". The bank increased rates 10 times between March 2022 and this July to tame inflation that peaked at more than 8% last year. However, economists expect the central bank to start easing interest rates as soon as April and money markets see them coming down around mid-year. (Reporting by Steve Scherer, editing by David Ljunggren)((Reuters Ottawa bureau, david.ljunggren@tr.com))Keywords: CANADA CENBANK/Our Standards: The Thomson Reuters Trust Principles.

Persons: Bank of Canada Carolyn Rogers, Blair Gable, Steve Scherer, David Ljunggren OTTAWA, Carolyn Rogers, Advocis, Rogers, they've, David Ljunggren Organizations: Bank of Canada, REUTERS, Reuters, Thomson Locations: Ottawa , Ontario, Canada, Ukraine, Israel, Advocis Vancouver, West Coast, Reuters Ottawa

☆ Some Bank of Canada governors saw likely need for higher rates - minutes
▼ + stars: | 2023-11-08 | by ( ) www.reuters.com time to read: +3 min

Governor of the Bank of Canada Tiff Macklem walks outside the Bank of Canada building in Ottawa, Ontario, Canada June 22, 2020. "Some members felt that it was more likely than not that the policy rate would need to increase further to return inflation to target," the minutes read. The minutes went on to say that the council decided to be "patient" and leave rates on hold. "They agreed to revisit the need for a higher policy rate at future decisions with the benefit of more information," the minutes said. The bank increased rates 10 times between March 2022 and this July, with inflation peaking at more than 8% last year.

Persons: Blair Gable, Steve Scherer, David Ljunggren OTTAWA, Macklem, David Ljunggren Organizations: Bank of Canada, REUTERS, Bank of Canada's, BoC, CBC, Reuters, Thomson Locations: Ottawa , Ontario, Canada, Reuters Ottawa

☆ Bank of Canada leaves rates on hold, sees weak growth and stubborn inflation
▼ + stars: | 2023-10-25 | by ( ) www.reuters.com time to read: +3 min

[1/2] Governor of the Bank of Canada Tiff Macklem walks outside the Bank of Canada building in Ottawa, Ontario, Canada June 22, 2020. The bank increased rates 10 times between March 2022 and this July, with inflation peaking at more than 8% last year. Inflation in September dipped to 3.8% from 4.0% in August, and the central bank said it would average 3.5% through mid-2024. "There is growing evidence that past interest rate increases are dampening economic activity and relieving price pressures," the Bank of Canada (BoC) said in a statement. In July, the BoC forecast third-quarter annualized growth of 1.5%.

Persons: Blair Gable, Steve Scherer, David Ljunggren OTTAWA, David Ljunggren Organizations: Bank of Canada, REUTERS, Wednesday, BoC, Reuters, Thomson Locations: Ottawa , Ontario, Canada, Israel, Gaza, Reuters Ottawa

☆ Canadians firms see inflation easing, sluggish demand - central bank survey
▼ + stars: | 2023-10-16 | by ( Steve Scherer | David Ljunggren | ) www.reuters.com time to read: +3 min

FILE PHOTO: Governor of the Bank of Canada Tiff Macklem walks outside the Bank of Canada building in Ottawa, Ontario, Canada June 22, 2020. About a third expect a recession over the coming year, the same level as the previous quarter, the survey said. Some 27% of businesses see it taking more than three years to bring inflation down to 2%, down from 32% the previous quarter, the central bank said. Some 53% of businesses see inflation remaining above 3% over the next two years, compared with 64% the previous quarter. A separate Bank of Canada survey showed consumers’ inflation expectations for the next year eased slightly, though they remained at more than 5%.

Persons: Blair Gable, “, Steve Scherer, David Ljunggren Organizations: OTTAWA, Bank of Canada, REUTERS, ” Bank of Canada, of Canada, Consumers, “ Firms, Reuters Locations: Ottawa , Ontario, Canada, Reuters Ottawa

☆ Bank of Canada says economy is not heading for a 'serious recession'
▼ + stars: | 2023-10-13 | by ( ) www.reuters.com time to read: +1 min

Governor of the Bank of Canada Tiff Macklem walks outside the Bank of Canada building in Ottawa, Ontario, Canada June 22, 2020. REUTERS/Blair Gable/File Photo Acquire Licensing RightsOTTAWA, Oct 13 (Reuters) - Bank of Canada Governor Tiff Macklem on Friday said the economy is not heading for a "serious recession" and that he is looking for a clear sign underlying inflation is easing ahead of a rate decision on Oct 25. "We're not going to be forecasting a serious recession," Macklem told reporters in a call from Marrakech, Morocco, where he was attending an IMF meeting. Macklem said the bank would be weighing whether to let previous rate hikes work through the economy or raise rates again to counter sticky inflation. "What we're looking for are clear signs that core inflation, underlying inflation, those pressures are easing and inflation is going to be coming down," Macklem said.

Persons: Blair Gable, We're, Macklem, Steve Scherer, David Ljunggren Organizations: Bank of Canada, REUTERS, Rights OTTAWA, Reuters, Thomson Locations: Ottawa , Ontario, Canada, Marrakech, Morocco, Reuters Ottawa

☆ Bank of Canada struck intentionally hawkish tone after last rate decision, minutes show
▼ + stars: | 2023-09-20 | by ( ) www.reuters.com time to read: +2 min

A sign is pictured outside the Bank of Canada building in Ottawa, Ontario, Canada, May 23, 2017. The Bank of Canada (BoC) kept its key rate at 5% on Sept 6, noting the economy had entered a period of weaker growth, but said it could hike again should price pressures persist. The hawkish tone struck by the BoC since the latest rate decision was intentional, according to the minutes, or summary of deliberations, of the six Governing Council members. They "considered the possibility that their decision could be misinterpreted as a sign that policy tightening had ended and that lower interest rates would follow," the summary read. It continued: "They agreed that they did not want to raise expectations of a near-term reduction in interest rates, given that they only considered keeping the policy rate where it is or raising it further."

Persons: Chris Wattie, Steve Scherer, David Ljunggren OTTAWA, Sharon Kozicki, David Ljunggren Organizations: Bank of Canada, REUTERS, The Bank of Canada, BoC, Reuters, Thomson Locations: Ottawa , Ontario, Canada, Reuters Ottawa

☆ Bank of Canada: Underlying inflation is inconsistent with 2% target
▼ + stars: | 2023-09-19 | by ( ) www.reuters.com time to read: +2 min

A sign is pictured outside the Bank of Canada building in Ottawa, Ontario, Canada, May 23, 2017. REUTERS/Chris Wattie/File Photo Acquire Licensing RightsBy Steve Scherer and David LjunggrenOTTAWA, Sept 19 (Reuters) - The Bank of Canada on Tuesday said recent volatility in headline inflation is not unusual but the underlying trend shown by core measures was inconsistent with bringing inflation down to the 2% target. "(They) are one reason why we look at measures of core inflation - which exclude components with more volatile price movements - to get a sense of what underlying inflation is." One of those core measures, CPI-trim - which leaves out spiking mortgage interest costs - has been between 3.5%-4% in recent months. "Underlying inflation is still well above the level that would be consistent with achieving our target of 2% CPI inflation," Kozicki said.

Persons: Chris Wattie, Steve Scherer, David Ljunggren OTTAWA, Sharon Kozicki, Kozicki, Macklem, David Ljunggren Organizations: Bank of Canada, REUTERS, University of Regina, Reuters, Thomson Locations: Ottawa , Ontario, Canada, Saskatchewan, Reuters Ottawa

☆ Bank of Canada says interest rates may not be high enough
▼ + stars: | 2023-09-07 | by ( ) www.reuters.com time to read: +3 min

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 RightsBy Steve Scherer and David LjunggrenOTTAWA, Sept 7 (Reuters) - Bank of Canada Governor Tiff Macklem on Thursday said interest rates may not be high enough to bring inflation back down to target, sending a hawkish message after holding borrowing costs at a 22-year high a day earlier. The central bank hiked rates by a quarter point in both June and July in a bid to tame stubbornly high inflation. "We don't want to raise our policy rate more than we have to," Macklem said, adding that persistently high inflation would be worse for Canadians than high borrowing costs. (Reporting by Steve Scherer, editing by David Ljunggren)((Reuters Ottawa bureau, david.ljunggren@tr.com))Keywords: CANADA CENBANK/Our Standards: The Thomson Reuters Trust Principles.

Persons: Blair Gable, Steve Scherer, David Ljunggren OTTAWA, Macklem, Chrystia Freeland, David Ljunggren Organizations: Canada, REUTERS, Bank of Canada, BoC, federal, Reuters, Thomson Locations: Ottawa , Ontario, Canada, Calgary , Alberta, Reuters Ottawa

☆ Bank of Canada holds rates, says it could hike further if inflation persists
▼ + stars: | 2023-09-06 | by ( ) www.reuters.com time to read: +2 min

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. "Governing Council remains concerned about the persistence of underlying inflationary pressures, and is prepared to increase the policy interest rate further if needed." Liberal 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. Bank of Canada Governor Tiff Macklem will deliver a speech and hold a press conference to discuss the decision on Thursday.

Persons: Blair Gable, Steve Scherer, David Ljunggren OTTAWA, Justin Trudeau's, Pierre Poilievre, David Ljunggren Organizations: Canada, REUTERS, Bank of Canada, Wednesday, Governing, of Canada, BoC, Liberal, Conservative, Reuters, Thomson Locations: Ottawa , Ontario, Canada, Reuters Ottawa

☆ Bank of Canada hiked rates over alarm at household spending, stubborn inflation
▼ + stars: | 2023-06-08 | by ( ) www.reuters.com time to read: +3 min

By Steve Scherer and David LjunggrenOTTAWA, June 8 (Reuters) - Surprisingly strong household spending in the first quarter and stubbornly high core inflation were among the top reasons the Bank of Canada hiked rates after a four-month pause, a senior official said on Thursday. The Bank of Canada (BoC) on Wednesday hiked its overnight rate to a 22-year high of 4.75%, and markets and analysts forecast yet another increase next month after the policy announcement declared monetary policy was not sufficiently restrictive. Speaking to business executives in Vancouver in the BoC's first remarks since raising rates, Beaudry singled out unexpectedly strong household spending, a rebound in the housing market, a tight labor market, and sticky core inflation as the main factors behind the latest move. Core inflation measures "seem to have lost their downward momentum", he said. There is a greater risk of higher rates in the future, so "it's important to think ahead", Beaudry said, and "be better prepared in the eventuality that we have entered a new era of structurally higher interest rates".

Persons: Steve Scherer, David Ljunggren OTTAWA, Paul Beaudry, Beaudry, David Ljunggren Organizations: Bank of Canada, Wednesday, BoC, Reuters, Thomson Locations: Vancouver, Reuters Ottawa

☆ Bank of Canada says rates may have to remain restrictive for longer
▼ + stars: | 2023-04-12 | by ( ) www.reuters.com time to read: 1 min

OTTAWA, April 12 (Reuters) - Interest rates in Canada may have to stay restrictive for longer to ensure inflation declines to the Bank of Canada's 2% target, Governor Tiff Macklem said on Wednesday. Macklem, speaking after the bank announced that it was holding its key rate at 4.50%, said the central bank's governing council had discussed whether rates had been raised enough. Macklem said that while the bank was encouraged inflation was dropping, the job of monetary policy was not done. "We considered the likelihood that the policy rate may need to remain restrictive for longer to return inflation to the 2% target," he said. (Reporting by David Ljunggren, editing by Steve Scherer)((Reuters Ottawa bureau, david.ljunggren@tr.com))Keywords: CANADA CENBANK/MACKLEMOur Standards: The Thomson Reuters Trust Principles.

☆ Bank of Canada sees stronger 2023 growth, indicates recession risk has shrunk
▼ + stars: | 2023-04-12 | by ( ) www.reuters.com time to read: +1 min

OTTAWA, April 12 (Reuters) - The Bank of Canada on Wednesday increased its 2023 growth forecast to 1.4%, up from the 1.0% it predicted in January, and indicated it saw less risk of a recession this year. The bank said annualised growth would hit 2.3% in the first quarter before averaging less than 1.0% for the rest of 2023. The bank dropped language saying the chances of a couple of quarters with slightly negative growth were the roughly the same as a couple of quarters with slightly positive growth. The bank cut the 2024 growth forecast to 1.3% from 1.8% in January and said the economy would expand by 2.5% in 2025. (Reporting by Steve Scherer and David Ljunggren)((Reuters Ottawa bureau; david.ljunggren@tr.com))Keywords: CANADA CENBANK/FORECASTSOur Standards: The Thomson Reuters Trust Principles.

☆ Bank of Canada 'ready to act' in event of extreme market stress
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +3 min

The failures of U.S. lenders Silicon Valley Bank and Signature Bank, followed by Credit Suisse's rescue, is prompting central bankers to closely monitor the potential for banking stress to trigger a credit crunch. "The Bank's mandate to promote the stability of the financial system means that we're ready to act in the event of severe market-wide stress and provide liquidity support to the financial system," Gravelle said. This is the first time the Bank of Canada has commented on the banking turmoil in the U.S. and Europe. For now, the banking stress in the United States appears under control. At its peak, the central bank had C$440 billion in government bonds, and it now has about $C200 billion.

☆ Bank of Canada fretted inflation could 'get stuck' above 2% target, minutes show
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +2 min

On March 8, the bank became the first major central bank to pause its tightening campaign, leaving the key overnight interest rate on hold at 4.50%, as expected. It vowed to hold off on further hikes as long as inflation continued to ease in line with its forecasts. In January the bank said it expected inflation to ease to 3% at around mid-year and to slow to 2% next year. But during the deliberations ahead of the announcement, the bank noted that services inflation "is proving sticky", according to minutes from the policy-setting meeting released on Wednesday. The five-member governing council remains "concerned about the risk that inflation could get stuck materially above the 2% target," the minutes said.

☆ Bank of Canada says it needs more evidence that rates are high enough
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +2 min

By Steve Scherer and David LjunggrenOTTAWA, March 9 (Reuters) - The Bank of Canada needs more evidence to gauge if interest rates are high enough to tame inflation, in part because the economies of major trading partners are doing better than forecast, senior deputy governor Carolyn Rogers said on Thursday. She spoke a day after the central bank left its key overnight interest rate on hold at 4.50%, becoming the first major central bank to suspend its tightening campaign as inflation eases. "If evidence accumulates suggesting inflation may not decline in line with our forecast, we're prepared to do more." The economic growth and inflation outlooks for both the United States and Europe are higher than the bank had expected in January. (Additional reporting by Fergal Smith in Toronto)((Reuters Ottawa bureau; david.ljunggren@tr.com))Keywords: CANADA CENBANK/Our Standards: The Thomson Reuters Trust Principles.

☆ -Bank of Canada rate hike reflected labor tightness, stronger-than-expected growth
▼ + stars: | 2023-02-08 | by ( ) www.reuters.com time to read: +3 min

On Jan 25 the Bank of Canada hiked its key interest rate to 4.5%, the highest level in 15 years, and became the first major central bank to say it would likely hold off on further increases for now. On Tuesday, Governor Tiff Macklem said no further rate hikes would be needed if, as expected, the economy stalled and inflation fell. "Council wanted to convey that the bar for additional rate increases was now higher" and to "give a clear sense that they would need an accumulation of evidence to determine whether further rate increases would be required" to return inflation to target. The Bank of Canada had stood out from its peers, including the U.S. Federal Reserve, the Bank of England and the European Central Bank, in not providing some form of record of their meetings. (Reporting by Steve Scherer, editing by David Ljunggren)((Reuters Ottawa bureau; david.ljunggren@tr.com))Keywords: CANADA CENBANK/UPDATE 1Our Standards: The Thomson Reuters Trust Principles.

☆ Exclusive: -Bank of Canada's Macklem says he is 'not even thinking' of cutting rates
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +1 min

OTTAWA, Jan 25 (Reuters) - Bank of Canada Governor Tiff Macklem on Wednesday said he was focused on whether interest rates would need to go higher and is not even considering cutting them as part of the fight against inflation. Macklem made his remarks in an interview with Reuters after earlier announcing a rate hike and saying the central bank would pause to see how the economy was reacting to tightening. "As things start to get more back to normal, at some point, yes, we probably will be thinking about some modest cuts in interest rates," Macklem said. We're not even thinking about cuts ... the question really we're asking ourselves is, 'Have we done enough?' (Reporting by Steve Scherer and David Ljunggren)((Reuters Ottawa bureau, +1 647 480 7921; david.ljunggren@tr.com))Keywords: CANADA CENBANK/MACKLEM RATESOur Standards: The Thomson Reuters Trust Principles.

☆ Bank of Canada says growth to stall through the middle of 2023
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +1 min

OTTAWA, Jan 25 (Reuters) - The Bank of Canada on Wednesday said growth would stall through the middle of this year and predicted that while inflation would come down faster than previously forecast, it would not return to the bank's 2% target until next year. Inflation is seen on average at 3.6% this year, compared with the previous forecast of 4.1%. Stalling growth during the first half means "the likelihood of a couple of quarters with slightly negative growth is roughly the same as that of a couple of quarters with slightly positive growth," it said. In 2022, the economy likely expanded by 3.6%, compared with a previous forecast of 3.3%, and expanding 1.8% next year, lower than the 2% previously forecast. The bank separately increased its overnight policy rate by a quarter of a percentage point to 4.5% and indicated it would likely pause there to monitor the impact of previous rate hikes.

☆ Bank of Canada raises rates, says it is likely to pause for now
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +1 min

OTTAWA, 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 years, and said it would likely pause to measure the cumulative effect of previous increases. Inflation will fall to about 3% around the middle of this year, and reach target next year. If the economy evolves as forecast, "Governing Council expects to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increases," according to a statement. "Governing Council is prepared to increase the policy rate further if needed to return inflation to the 2% target." (Reporting by Steve Scherer and David Ljunggren)((Reuters Ottawa bureau, +1 647 480 7921; david.ljunggren@tr.com))Keywords: CANADA CENBANK/RATESOur Standards: The Thomson Reuters Trust Principles.

☆ Bank of Canada increases rates by 50 bps, says hikes may be over
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +1 min

OTTAWA, Dec 7 (Reuters) - The Bank of Canada on Wednesday hiked its benchmark overnight interest rate by 50 basis points to 4.25%, the highest level in almost 15 years, and signalled the tightening campaign was near an end. The central bank, which has raised rates at a record pace of 400 basis points in nine months, cited still-strong growth and tight labor markets as the reason for the latest increase. But it eliminated the forward guidance it has used since the start of the tightening cycle, dropping language that said rates would have to rise further. Gross domestic product growth in the third quarter, which grew at an annualized 2.9%, was stronger than expected and there is still "excess demand" in the economy, while labor markets remained tight, it said. (Reporting by Steve Scherer, editing by David Ljunggren)((Reuters Ottawa bureau, +1 647 480 7921; david.ljunggren@tr.com))Our Standards: The Thomson Reuters Trust Principles.

☆ Bank of Canada: labor market can be cooled without jobless surge
▼ + stars: | 2022-11-10 | by ( Shariq Khan | ) www.reuters.com time to read: +1 min

OTTAWA, Nov 10 (Reuters) - Canada's red-hot labor market can weather an economic slump without seeing a major surge in unemployment, the central bank said on Thursday, ahead of another expected interest rate increase. The bank forecasts growth will stall through the middle of next year. Tightening monetary policy to combat inflation would push up the jobless rate, he added. "But because the labor market is so hot and we have an exceptionally high number of vacant jobs, there is scope to cool the labor market without causing the kind of large surge in unemployment that we have typically experienced in recessions," he said. (Reporting by Steve Scherer, editing by David Ljunggren)((Reuters Ottawa bureau, +1 647 480 7921; david.ljunggren@tr.com))Keywords: CANADA CENBANK/Our Standards: The Thomson Reuters Trust Principles.

☆ Canada to set up tax credits for clean tech, launch growth fund
▼ + stars: | 2022-11-03 | by ( Rachel Parsons | ) www.reuters.com time to read: +2 min

OTTAWA, Nov 3 (Reuters) - Canada will introduce refundable tax credits for clean technologies worth up to 30% of investment costs, in a bid to close competitive gaps with the United States in scaling up green technologies, the government said on Thursday. The clean-tech tax credits will be offered for investors in net-zero technologies, battery storage and clean hydrogen, according to the so-called fall economic statement (FES) presented to the House of Commons by Finance Minister Chrystia Freeland. The tax will generate an estimated C$2.1 billion over five years and will come into force on Jan 1, 2024. "In terms of trying to foster business investments, I don't think it's well targeted," said Robert Asselin, senior vice president of policy at the Business Council of Canada. In next year's budget, Canada will introduce new measures to increase advanced manufacturing competitivness, the document said.

☆ Bank of Canada: inflation is still too high, but moving in the right direction
▼ + stars: | 2022-09-20 | by ( ) www.reuters.com time to read: +1 min

OTTAWA, Sept 20 (Reuters) - The Bank of Canada on Tuesday said inflation remained "too high" even as data showed price pressures were easing off peak levels, and pledged to continue to do whatever was needed to bring it back to target. While we're headed in the right direction, that's still too high," Beaudry said in prepared remarks provided ahead of the speech. Inflation slowed again in August, though at 7.0% it remains well above target. The three core measures of inflation, which taken together are seen as a better indicator of underlying price pressures, also eased slightly. (Reporting by Julie Gordon, editing by David Ljunggren)((Reuters Ottawa bureau, + 1 647 480 7921; david.ljunggren@tr.com))Register now for FREE unlimited access to Reuters.com RegisterOur Standards: The Thomson Reuters Trust Principles.

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