Tag: BoC

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Business Outlook Turns Negative in Canada Amid Higher Rates

Colin Henderson

Inflation expectations fall in BoC surveys but remain too high Bloomberg report Canadian economy is properly responding to the interest rate increases. The tight labour market is expected to improve with impact of coming aggressive immigration increase policies. Snippets from Bloomberg article: The central bank’s business outlook indicator fell to -1.1 in the first quarter, from 0.1 previously. Firms expect slower sales growth for the fifth straight survey, due to higher interest rates, high inflation and concern about a recession. The data suggest the Bank of Canada’s aggressive rate increases over the past year are working to drag down inflation … Continue reading Business Outlook Turns Negative in Canada Amid Higher Rates

Economy

Bank of Canada joins other Central Banks is calling for caution

Colin Henderson

In the regular Monetary Policy Report the Bank of Canada keeps their focus on a low interest rate environment right through 2010. On inflation the view is mixed … The main upside risks to inflation relate to the possibility of a stronger-than anticipated recovery in the global economy. A stronger global recovery would be transmitted to Canada via trade, financial, confidence, and commodity price channels. There is also the risk that Canadian domestic demand could be more robust and have a more sustained momentum than projected. On the downside, a stronger-than-assumed Canadian dollar, driven by global portfolio movements out of … Continue reading Bank of Canada joins other Central Banks is calling for caution