Bank of Canada officials debated holding rates or hiking in January, the first\u002Dever release of minutes revealed. Find out more
“Members were in broad agreement that, going forward, it would be appropriate to pause any additional tightening to allow economic developments to unfold,” the bank said. Holding rates gives officials time to assess the full impact of the effects of the aggressive hiking cycle and “balance the risk of over- versus under-tightening.”Article content
As such, the release didn’t have much impact on markets. The yield on Canadian government two-year bonds dipped slightly after the release, then rose again to trade at 3.934 per cent as of 1:57 p.m. The loonie was little changed at 74.43 US cents. Going into the meeting, a still-tight labour market and a stronger-than-expected growth in the second half of last year were cited as reasons to go ahead with a hike.
Still, the five-person panel “wanted to give a clear sense that they would need an accumulation of evidence” before considering to hike further.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of Canada takes historic step in improving transparency with release of minutesThe Bank of Canada will release minutes from its policy setting meeting for the first time on Wednesday, as the central bank battles to restore credibility lost during last year's fight to contain inflation. The Bank of Canada has come under a rare attack from critics, including the opposition Conservative leader Pierre Poilievre, for misjudging inflation, which led to renewed calls for it to release minutes and be more transparent about its decision-making process. While inflation was a global problem, the Bank of Canada has stood out from its peers, including the U.S. Federal Reserve, the Bank of England and the European Central Bank, in not providing some form of record of their meetings.
Read more »
Policy missteps drive Bank of Canada to reveal more about how it sets rates - BNN BloombergThe Bank of Canada has always kept the curtain closed on how it makes interest-rate decisions. That’s about to change.
Read more »
Bank of Canada governor says no new rate hikes needed if economy develops as expectedBank of Canada governor said no further interest rate hikes will be needed if the economy stalls and inflation comes down. Read more
Read more »
Bank of Canada governor says no new rate hikes needed if economy develops as expectedBank of Canada governor said no further interest rate hikes will be needed if the economy stalls and inflation comes down. Read more
Read more »
Bank of Canada governor says no new rate hikes needed if economy develops as expectedBank of Canada governor said no further interest rate hikes will be needed if the economy stalls and inflation comes down. Read more
Read more »
Bank of Canada governor says no new rate hikes needed if economy develops as expectedBank of Canada governor said no further interest rate hikes will be needed if the economy stalls and inflation comes down. Read more
Read more »