Hike rates

BOC Macklem says expects to raise rates further

Bank of Canada Governor Macklem and Senior Deputy Governor Carolyn Rogers appear before the Canadian Parliament’s Standing Senate Committee on Banking, Trade and Economics, answering questions from senators on the Canadian economy and Bank policy.

  • We expect our key rate to rise further
  • The extent of the rate hike will depend on how monetary policy works, whether supply issues are resolved and how inflation reacts to this tightening cycle.
  • We have yet to see a general decline in pricing pressures
  • There are no easy solutions to restore price stability
  • recalls that “this tightening phase is coming to an end. We’re getting closer, but we’re not there yet’
  • We are still far from the goal of low, stable and predictable inflation
  • it will take time to return to solid growth with low inflation, but we will get there

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The Canadian dollar (CAD) is the official currency of Canada and, at the time of writing, is the fifth most widely held reserve currency in the world behind the US dollar, euro, Japanese yen and British pound. . The CAD is commonly referred to as the Loonie by forex analysts and traders. As of this writing, the CAD represents 2% of all global currency reserves. Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty and historical stability. Originally introduced in 1858, the CAD has since its inception maintained a close link to the US dollar. This is due to the high degree of trade between the two countries, with the United States receiving the vast majority of Canadian exports, and Canada in turn importing more than half of its goods from its southern neighbour. For brief periods, the CAD has been pegged to the US dollar throughout its history. Currently, the Bank of Canada (BoC) is responsible for intervening to maintain the value of the currency. The value of the CAD is highly correlated to the strength of global commodity prices such as oil. As a producer and exporter of oil and other commodities, Canada benefits from rising crude oil prices. When commodity prices rise, Canada’s terms of trade also generally improve, and vice versa. Additionally, a number of domestic factors can also influence the CAD. This includes interest rates set by the Bank of Canada, national inflation rates, trade surpluses, foreign investment and direct payments.

The Canadian dollar (CAD) is the official currency of Canada and, at the time of writing, is the fifth most widely held reserve currency in the world behind the US dollar, euro, Japanese yen and British pound. . The CAD is commonly referred to as the Loonie by forex analysts and traders. As of this writing, the CAD represents 2% of all global currency reserves. Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty and historical stability. Originally introduced in 1858, the CAD has since its inception maintained a close link to the US dollar. This is due to the high degree of trade between the two countries, with the United States receiving the vast majority of Canadian exports, and Canada in turn importing more than half of its goods from its southern neighbour. For brief periods, the CAD has been pegged to the US dollar throughout its history. Currently, the Bank of Canada (BoC) is responsible for intervening to maintain the value of the currency. The value of the CAD is highly correlated to the strength of global commodity prices such as oil. As a producer and exporter of oil and other commodities, Canada benefits from rising crude oil prices. When commodity prices rise, Canada’s terms of trade also generally improve, and vice versa. Additionally, a number of domestic factors can also influence the CAD. This includes interest rates set by the Bank of Canada, national inflation rates, trade surpluses, foreign investment and direct payments.
Read this term central bank Gov Macklem, the full opening statement is here: