The Bank of Canada is still on track to pause interest rates, but it\u0027s a \u0022conditional pause,\u0022 governor Tiff Macklem says. Find out more.
The emphasis on the conditionality of the Bank of Canada’s new forward guidance is important. Monetary policy is always contingent on the economy breaking as central banks foresee in their forecasts. In extraordinary circumstances, central banks will emphasize which way they are leaning, betting that extra clarity will shape expectations and help get them where they want to go.
This is a conditional pause — it is conditional on economic developments evolving broadly in line with our forecastNow, Macklem’s main worry is inflation. The Bank of Canada’s forecast has year-over-year increases in the consumer price index slowing to the central bank’s target of two per cent at some point in 2024. Policymakers say the risks to that forecast — the variables that could cause inflation to remain hotter than they expect, or trigger a more painful recession — are “balanced.
,” Mohamed El-Elrian, chair of Gramercy Funds and a widely read economic commentator, told Bloomberg Television on Feb. 14.Article content According to Beaudry, inflation is largely determined by two things: companies’ cost pressures and their expectations of where prices are headed. When inflation is high, companies tend to adjust prices more frequently to keep higher prices from collapsing their margins. It’s fairly easy to do this without hurting sales because all companies are doing the same thing, so higher input costs are swiftly passed on to customers.
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.
Kevin Carmichael: 3 things the Bank of Canada subtly told us this weekThe Bank of Canada is still on track to pause interest rates, but it\u0027s a \u0022conditional pause,\u0022 governor Tiff Macklem says. Find out more.
Read more »
Kevin Carmichael: 3 things the Bank of Canada subtly told us this weekThe Bank of Canada is still on track to pause interest rates, but it\u0027s a \u0022conditional pause,\u0022 governor Tiff Macklem says. Find out more.
Read more »
Canada's Outstanding CEO of the Year: Royal Bank of Canada’s Dave McKayRBC CEO Dave McKay is dedicated to advancing Canadian interests and a champion of issues like climate change and youth employment. Read more
Read more »
Senate calls for more transparency from Bank of CanadaSenate committee on banking, commerce and the economy published a report looking at the state of the economy, suggesting parliamentarians spend more time looking at monetary policy issues
Read more »
Senate calls for Bank of Canada to be more transparentA Senate committee called for greater parliamentary oversight of the Bank of Canada and more transparency from the central bank.
Read more »
Canadian Senate calls for Bank of Canada to be more transparentA Senate committee on Wednesday called for greater parliamentary oversight of the Bank of Canada and more transparency from the central bank as it battles to…
Read more »