The deliberations of the Bank of Canada's Governing Council have resulted in a fixed announcement date for the monetary policy decision on April 10, 2024. The Council, led by Governor Tiff Macklem, engaged in discussions surrounding the global and Canadian economies, as well as inflation outlooks.In analyzing the international economy, the Council noted projections of stronger growth in the US and gradual improvements in the euro area, while acknowledging challenges faced by China's economy. Governor Macklem and other members highlighted the risk of stronger US GDP growth...
Results from the Market Participants Survey for the first quarter of 2024, conducted from March 7 to 15, 2024, have been released, providing insights into the economic outlook for Canada. The survey, based on questionnaire responses from approximately 30 financial market participants, revealed various forecasts and probabilities regarding GDP growth, inflation, monetary policy, and financial assets.According to the survey, respondents provided their forecasts for real GDP growth in Canada. The median forecast for the end of 2024 is 1.0%, with a 25th percentile forecast of...
The Bank of Canada has announced its decision to maintain the policy rate at 5% and continue its quantitative tightening strategy. The Bank Rate remains at 5¼% and the deposit rate at 5%. According to the Bank, the global economy is expected to grow at a rate of about 3%, with inflation in most advanced economies gradually easing. The US economy has shown strength, driven by resilient consumption and strong business and government spending. The euro area is projected to recover from weak growth, while global oil prices have increased above previous assumptions.In...
The Bank of Canada, in a Monetary Policy Report press conference, announced its decision to maintain the policy interest rate at 5%. Senior Deputy Governor Carolyn Rogers joined the speaker in discussing the policy announcement and report.The bank emphasized the effectiveness of monetary policy, noting a decrease in total consumer price index (CPI) and core inflation. They expect inflation to move closer to the 2% target throughout the year. Additionally, the bank highlighted positive economic growth trends, with expectations of solid GDP growth and further strengthening...
The Monetary Policy Report released on April 10, 2024, highlighted the positive impact of monetary policy on inflation reduction. According to the report, "monetary policy is working to reduce inflationary pressures and inflation is coming down, although it will take more time to see if this progress proves durable."The report also provided insights into the future trajectory of inflation, stating, "The Bank projects that inflation will stay around 3% into the second quarter of 2024, ease below 2.5% in the second half of the year and return to target in 2025."These...
Firms reported that demand remains weak overall. But there are some signs of returning optimism. Namely, indicators of business conditions, sales outlooks and employment intentions have changed direction after many quarters of decline. In the wake of weak past sales growth, expectations for improved sales are supported by population growth, efforts to enter new markets or develop new products, and expectations that interest rates will decline over the next 12 months."Firms reported that business conditions improved slightly in the first quarter. The uptick in sentiment...
The latest Canadian Survey of Consumer Expectations for the first quarter of 2024, released on April 1, 2024, provides valuable insights into consumer perceptions regarding inflation, the labor market, and household finances. According to the report, consumers believe that inflation has slowed, but their expectations for near-term inflation have not changed significantly.Consumers' perceptions of inflation are closely tied to their own experiences with price changes for essential items like food and gas. The survey indicates that expectations for long-term inflation have...