This figure fell in line with analysts’ previous estimates of a 0.3% rise in May. For the second quarter, the Bank of Canada forecast a 1.5% annualized GDP rise. Should June’s GDP fall by 0.2%, however, this would result in a lower 1% year-on-year rise for the quarter.

Statscan observed that a rise in manufacturing and real estate sectors as well as a recovery in wholesale and public administration helped to drive economic growth in May. Manufacturing posted its highest rise since October 2021.

These increases helped to offset sustained losses in Canada’s energy sector, with raging wildfires in the main oil-producing province of Alberta pushing the sector lower.

The post Canadian Economy Expected to Contract in June Following Previous Rise appeared first on theprimarymarket.com.

In June the bank raised its rate by a quarter percentage point, reaching a 22-year high of 4.75% following a five-month pause. This month, the Canadian central bank is expected to implement another quarter-point hike.

“While the data released since the June meeting suggests that the economy has cooled on the margin, the details have been uniformly stronger,” Jay Zhao-Murray, FX analyst at Monex Canada explained before confirming his firm’s expectation that the interest rate will be raised to 5% in July.

Of the 24 economists surveyed by Reuters on the matter, 20 expect the Bank of Canada to raise its interest rates by a quarter percentage point.

While the central bank aims to get Canadian inflation down to 2%, it is also wary that too many rate hikes could send the economy into a recession; another outcome that the Bank of Canada is looking to avoid.

The post Bank of Canada Expected to Hike Rates in July appeared first on theprimarymarket.com.

The interest rates hike was widely expected in Canada as the country is trying to find ways to tame the surging inflation. But most experts predicted that the Bank of Canada would take a page from the Fed’s book and go with 75 basis points.

Instead, the Bank of Canada went with 100 basis points in what became the largest interest rate hike since 1998. This brought the policy rate to 2.5 percent, and this might not be the end of it. According to officials, if the move doesn’t bring satisfactory results, more hikes are on the way.

“With the economy clearly in excess demand, inflation high and broadening, and more businesses and consumers expecting high inflation to persist for longer, the Governing Council decided to front-load the path to higher interest rates,” the Bank of Canada said in an official statement.

Speaking at a press conference, Bank of Canada Governor Tiff Macklem said that the aggressive hike was made in order to avoid bigger hikes in the future. Macklem argues that the move was made to get the “policy rate quickly to the top end,” which is expected to be just above the neutral range of 2% and 3%.

In the aftermath of the hike, the Canadian dollar surged compared to the U.S. dollar (USD). One USD started trading at C$1.2952, which represents a 0.5% jump.

The post Bank of Canada Just Hiked Interest Rates By a Full Percentage Point appeared first on theprimarymarket.com.

This figure fell in line with analysts’ previous estimates of a 0.3% rise in May. For the second quarter, the Bank of Canada forecast a 1.5% annualized GDP rise. Should June’s GDP fall by 0.2%, however, this would result in a lower 1% year-on-year rise for the quarter.

Statscan observed that a rise in manufacturing and real estate sectors as well as a recovery in wholesale and public administration helped to drive economic growth in May. Manufacturing posted its highest rise since October 2021.

These increases helped to offset sustained losses in Canada’s energy sector, with raging wildfires in the main oil-producing province of Alberta pushing the sector lower.

The post Canadian Economy Expected to Contract in June Following Previous Rise appeared first on theprimarymarket.com.

In June the bank raised its rate by a quarter percentage point, reaching a 22-year high of 4.75% following a five-month pause. This month, the Canadian central bank is expected to implement another quarter-point hike.

“While the data released since the June meeting suggests that the economy has cooled on the margin, the details have been uniformly stronger,” Jay Zhao-Murray, FX analyst at Monex Canada explained before confirming his firm’s expectation that the interest rate will be raised to 5% in July.

Of the 24 economists surveyed by Reuters on the matter, 20 expect the Bank of Canada to raise its interest rates by a quarter percentage point.

While the central bank aims to get Canadian inflation down to 2%, it is also wary that too many rate hikes could send the economy into a recession; another outcome that the Bank of Canada is looking to avoid.

The post Bank of Canada Expected to Hike Rates in July appeared first on theprimarymarket.com.

The interest rates hike was widely expected in Canada as the country is trying to find ways to tame the surging inflation. But most experts predicted that the Bank of Canada would take a page from the Fed’s book and go with 75 basis points.

Instead, the Bank of Canada went with 100 basis points in what became the largest interest rate hike since 1998. This brought the policy rate to 2.5 percent, and this might not be the end of it. According to officials, if the move doesn’t bring satisfactory results, more hikes are on the way.

“With the economy clearly in excess demand, inflation high and broadening, and more businesses and consumers expecting high inflation to persist for longer, the Governing Council decided to front-load the path to higher interest rates,” the Bank of Canada said in an official statement.

Speaking at a press conference, Bank of Canada Governor Tiff Macklem said that the aggressive hike was made in order to avoid bigger hikes in the future. Macklem argues that the move was made to get the “policy rate quickly to the top end,” which is expected to be just above the neutral range of 2% and 3%.

In the aftermath of the hike, the Canadian dollar surged compared to the U.S. dollar (USD). One USD started trading at C$1.2952, which represents a 0.5% jump.

The post Bank of Canada Just Hiked Interest Rates By a Full Percentage Point appeared first on theprimarymarket.com.