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Fifth straight rate hold expected as Bank of Canada meets Wednesday
Financial markets see a fifth straight hold as 88,000 jobs were added in May and core inflation stayed near target, economists said.
- The Bank of Canada is widely expected to hold its benchmark interest rate steady at 2.25 per cent for the fifth consecutive time when it meets Wednesday, as economic uncertainty persists.
- Statistics Canada reported a 0.1 per cent gross domestic product contraction in the first quarter, yet the country added nearly 88,000 jobs last month as the unemployment rate fell to 6.6 per cent from 6.9 per cent.
- While global oil benchmarks have traded below US$100 in recent weeks amid hopes for a lasting end to the war, policymakers remain aware that conflict in the Middle East could restart in earnest at any point.
- RBC senior economist Claire Fan noted that "being on the sideline is the most prudent when you are driving in the fog," as the bank assesses the growth and inflation trade-off.
- Financial markets are pricing in one potential quarter-point rate hike from the Bank of Canada later this year, as uncertainty regarding the July 1 review of the Canada-United States-Mexico Agreement clouds the outlook.
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Winnipeg Free Press+10 Reposted by 10 other sources
Fifth straight rate hold expected as Bank of Canada meets Wednesday
Economists expect the Bank of Canada to hold its benchmark interest rate steady for the fifth straight time when it meets Wednesday, but its messaging could shed light on how it is navigating ongoing geopolitical uncertainties.
·Winnipeg, Canada
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Fifth straight rate hold expected as Bank of Canada meets Wednesday
Economists expect the Bank of Canada to hold its benchmark interest rate steady for the fifth straight time when it meets Wednesday, but its messaging could shed light on how it is navigating ongoing geopolitical uncertainties. The central bank held its policy rate at 2.25% when it last met in April. Bank of Canada governor Tiff Macklem at the time did not rule out future adjustments depending on how risks play out. He had said “monetary policy …
Coverage Details
Total News Sources15
Leaning Left4Leaning Right2Center5Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 36%
C 46%
R 18%
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