Highlights of the Bank of Canada Interest Rate Decision and Statement
Wednesday 26/10/2022 | 14:00 GMT-0
26/10/2022 | 14:00 GMT-0
- The previous overnight rate was 3.25%
- Earlier, the statement said that “the Board of Governors still considers that the key interest rate will need to rise further.” This wording has been largely preserved and indicates that “the Governing Council expects the policy interest rate to rise further”
- Said “we will assess how much interest rates need to rise to return inflation target”
- The global and Canadian economies broadly move in line with the Bank’s July projection
- Non-gasoline inflation has risen and data points to further amplification of price pressures, particularly in services
- Surveys suggest that short-term inflation expectations remain high. The longer this lasts, the greater the risk that high inflation will take hold.
- Housing market declines as expected
The comment in the statement offers no sort of clue as to why they didn’t hit 50 instead of 75 basis points. Everything is hawkish and keeps suggesting more hikes to come. The RPM forecasts and commentary perhaps offer a better look as they predict weaker growth and lower inflation next year.
BOC Governor Tiff Macklem will hold a press conference at the start of the hour.
It’s a surprise and USD/CAD moved from 1.3550 to 1.3641.
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