Bank of Canada hikes rates by 100bps to 2.50%

(Telephorsa) – The Bank of Canada has increased His goal Overnight rate at 2.5% or 100 basis points, compared with analysts’ expectations for an increase of 75 basis points to 2.25%. Bank rate hiked to 275% and deposit rate to 2.5%. The bank also continues its quantitative tightening (QT) policy.

“The economy is clearly suffering from excess demand, high and buoyant inflation, and more businesses and consumers who expect high inflation to last longer,” the Governing Council concluded. Expect a path to higher interest rates Increase the official rate by 100 basis points”, read a statement issued at the end of the meeting.

The governing body “continues to believe Interest rates should rise further “The pace of increase will be driven by the Bank’s current assessment of the economy and inflation,” he stressed.

l’inflammation In Canada it was higher than the Bank had expected in its April Monetary Policy Report (MPR) and remained steady.It will be 8% in coming months. The Bank of Canada expects the Canadian economy to grow by 3.5% in 2022, 1.75% in 2023 and 2.5% in 2024. “Economic activity will moderate as global growth moderates and tighter monetary policy enters the economy – which is highlighted – which will address supply bottlenecks, rebalance supply and demand and reduce inflationary pressures.”

(Telephorsa) 07-13-2022 16:58