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Bank of Canada maintains fixed lending | Banks News

The Bank of Canada has kept its lending rate unchanged, but has highlighted the strength of the labor market and concerns about rising inflation which could lead to higher interest rates.

In a single ruling Wednesday, policymakers led by Governor Tiff Macklem dropped fixed interest rates at 0.25% and reiterated that the economy needed financial support.

However, officials have stopped short of saying that rising inflation is temporary and that recent jobs have been on the rise, the number of workers returning to the epidemic before.

Although the language barrier from the previous decision was significant, nothing can stop those who hope that the Bank of Canada is about to launch a price hike campaign.

“Inflation is rising and global volatility is exacerbated by inflation,” he said, adding that “recent economic indicators show that the economy has risen sharply in the fourth quarter.”

Bank of Canada is at the forefront of the Group of Seven Central Banks in reducing its incentives.

In October, it abolished its bond-buying program and extended what could be more futures amid concerns that the volatile stock market is pushing up prices. Markets are rising in Canada next year much faster than the Federal Reserve, which has not been able to end its volume reduction program.

Prior to Wednesday, investors raised prices in five Canadian stocks next year, with a chance of exceeding 50% of the first increase by January. The concept of representation is expected by all 22 economists surveyed by Bloomberg News. Markets set a chance to grow this week by about 20%.

Canadian yields at the end of the crash fell on the news, a two-year yield dropping about five points to 1.09%. The loonie briefly changed his previous findings before finding another reason to trade near his chosen destination.

At least one high price target for Bank of Canada on March 2 is the most expensive. Some analysts speculate that the central bank could strongly suggest a rise in prices in the next decision at the end of January, which did not happen. This prompted depositors to return their travel expenses next month.

The decision was “a bit skinny, but not self-inflicted,” Simon Harvey, an FX market expert at Monex Europe Ltd., said in an email.

However, it has been very difficult for the central bank to maintain real estate plans.

A report due next week from Statistics Canada could show inflation hitting a decade-long hit in November by about 5%. The risk of unemployment is about to drop by a decade. Employers are struggling to keep up the pace of work, and pay wages are increasing. House prices right now are on the rise.

In the statement, the policy makers cited all that is happening in their analysis of the Canadian economy.

Preventing the central bank from moving and committing itself to not raising interest rates until the recovery is over – something that officials expect in October will not happen until “midway” in 2022. .

Mr Macklem also promised not to sell the bonds at the central bank that the Canadian government holds until the start of the transition period.

In a review of the global economy, the central bank on Wednesday said it was continuing to see positive performance, rising inflation in many countries with high demand coming against the crisis. The omicron variation, however, has “brought new uncertainty” to the global economy.

The emergence of the omicron species, along with the recent floods in British Columbia, could also “increase growth.”

There were some variations around the language on the rise in prices, however. The central bank said the global crisis was “taking a long time to resolve, due to the current crisis.” He added that he continues to expect inflation to remain high in the first half of 2022, before returning to 2% in the second half of the year.

“The bank is monitoring its inflation expectations and operating costs to ensure that inflationary pressures are not compounded by rising inflation,” officials said. The corresponding sentence in the words of October described these powers as temporary.




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