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Thread: Bank of canada maintains overnight rate target at 1/2 per cent

  1. #1
    1 Attachment(s) The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 percent. The Bank Rate is 3/4 percent and the deposit fee is 1/4 percent.

    Economic statistics imply that global financial conditions have bolstered, since the Bank expected in its October Monetary Policy Report (MPR). But doubt, that has been undermining business confidence and dampening investment in Canada's major trading partners, remains undiminished. After the election in america, there's been a quick back-up in international bond yields, partially representing market expectation of financial growth in a US market that's near full capacity. Canadian returns have risen considerably in this circumstance.

    In Canada, the dynamics of expansion are largely since the Bank expected. Observing an extremely weak first half 2016, expansion from the next quarter rebounded strongly, but more moderate growth is expected in the fourth quarter. Consumption growth was strong in the next quarter, backed by the new Canada Child Benefit, although the effects of national infrastructure spending aren't yet evident from the GDP data. Meanwhile, industry investment and non-energy products exports are still disappoint. There have been continuing gains in labour, but a substantial number of financial slack stays in Canada, compared to the USA. While home imbalances continue to grow, these can be mitigated over the years by declared changes to home fund principles.

    Total CPI inflation has picked up lately however, is marginally below expectations, mainly due to lower food rates. Core inflation is near two percent since the impact of persistent financial downturn remains being offset by that of previous market r

  2. #2
    1 Attachment(s) The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 percent. The Bank Rate is 3/4 percent and the deposit rate is 1/4 percent.

    Uncertainty concerning the international outlook is undiminished, especially in regards to coverages in the USA. The Bank has made first assumptions about potential tax policies just, causing a small upward revision for its US growth prognosis. In general, the international economy is strengthening mainly as anticipated and prices of several commodities, such as oil, have grown. The quick back-up in international bond yields, partially reflecting market expectation of US financial growth, has pulled Canadian returns relative to the October Monetary Policy Report (MPR).

    Compared to the United States, Canada's market continues to operate with substance excess capacity. While employment growth has stayed business, indicators still point to considerable slack in the labor market. The source industry's adjustment to previous commodity redfenix declines seems to be mainly complete, but damaging wealth and income effects will last. The Canadian dollar has strengthened together with the US dollar against other currencies, exacerbating continuing competitiveness challenges and muting the outlook for exports. Consumption is expected to remain strong, while housing is going to likely be tempered by previously announced modifications to home fund rules and from mortgage rates that have grown in reaction to high bond yields. Federal and provincial financial steps continue to be expected to encourage expansion in 2017.

    Bearing in mind that the vital assumptions embedded in its own prediction, the Bank jobs that Canada's real GDP will rise by 2.1 percent in both 2017 and 2018. This suggests a return to total capability around mid-2018, in accordance with October's projection.

    Inflation in Canada has been lower than expected since October, largely since

  3. #3
    The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 percent. The Bank Rate is 3/4 percent and the deposit rate is 1/4 percent.

    CPI inflation rose to 2.1 percent in January, reflecting higher energy prices thanks in part to carbon dioxide steps introduced in two states. The Bank is searching through those consequences, as their effect on inflation will probably be temporary. The Bank's three measures of core inflation, taken Jeroverti, continue to point to substance excess capacity in the market.

    In general, recent statistics on the Canadian and global economies are consistent with the Bank's projection of enhancing expansion, as set out in the January Monetary Policy Report (MPR). In Canada, current ingestion and housing indicators indicate growth from the fourth quarter of 2016 might have been marginally stronger than anticipated. But, exports continue to deal with the continuing competitiveness challenges explained in the January MPR. The Canadian dollar and bond yields stay near amounts observed at that moment. While there were recent gains in labour, significant growth in salary and hours worked continue to signify persistent economic downturn in Canada, compared to the USA.

    The Bank's Governing Council remains attentive to the effect of significant uncertainties weighing on the prognosis and continues to track risks outlined at the January MPR. In this circumstance, Governing Council judges that the current stance of monetary policy remains appropriate and keeps the goal for the overnight rate at 1/2 percent.
    Information notice

    The upcoming scheduled date for announcing the overnight rate target is 12 April 2017. The upcoming full upgrade of the Bank's outlook for the economy and inflation, such as risks to the projection, which will be released in the MPR in exactly the exact same moment.

  4. #4
    Is it creating Cad powerful?

  5. #5
    Lol . . The bank main step is how much more occupations will Donald Trump grab from the Canadian market. The Loonie is doomed this season.

  6. #6
    Quote Originally Posted by julidiz97
    Can it be creating Cad powerful?
    If rate cut is just favour for Cad,not unchanged ,therefore mkt believe its lousy of CAD,therefore USD/CAD proceed upto 3400 amounts

  7. #7

  8. #8
    Mkt entire volumes visit Cad pairs.

  9. #9
    Where's BoC chief? He adore said something such as Rate cut the table short and proceed USD/CAD to new high.

  10. #10
    Crude Oil Inventories also unchanged...gont be poor for Usd?

  11. #11
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    Bank of canada maintains overnight rate target at 1/2 per cent

    The Bank of Canada is keeping its target for the overnight rate at 1/2 percent. The Bank Rate is correspondingly 3/4 percent and the deposit rate is 1/4 percent.

    Inflation is broadly consistent with all the Bank's projection in its April Monetary Policy Report (MPR). Food prices continue to drop, mostly due to intense competitors that is retail, pushing inflation briefly lower. The three steps of core inflation of the Bank stay below two percent and wage development is nevertheless subdued, in keeping with with continuing excessive capacity in the economy.

    The worldwide economy continues to gain traction and current developments enhance the Bank's view that progress will progressively improve and broaden within the projection horizon. As expected, development in the The States throughout the first quarter was weak, reflecting aspects that are largely short-term. Recent data point to some rebound in the 2nd quarter. The uncertainties outlined in the April MPR continue to cloud the outlooks that are Canadian and worldwide.

    The Canadian economy's adjustment to reduce oil prices is is basically full and current economic data have been encouraging, including indicators of company expense. The housing sector along with consumer spending continue to be strong on the trunk of an improving labour market, and these are getting more broadly based across areas. Other and macroprudential policy actions, while adding to to debt profiles that are more sustainable, have to have a significant cooling impact on housing markets. As expected in the face area of continuing competitiveness difficulties, in the April MPR meanwhile, export growth remains subdued. The track of the economic information of the Bank indicates that some moderation in the 2nd quarter will follows extremely robust progress in the first quarter.

  12. #12
    Do you believe USDCAD will contact 1.35 again?

  13. #13
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    Quote Originally Posted by mistersat View Post
    Do you believe USDCAD will contact 1.35 again?
    not really now

  14. #14
    Quote Originally Posted by mistersat View Post
    Do you believe USDCAD will contact 1.35 again?
    I feel UCAD will dip 1.34

  15. #15
    As anticipated, u/c may be heading down to 1.33

  16. #16
    it'll if USA raises rates..
    but seeking at nzd and aud..usdcad may increase to day
    Quote Originally Posted by mistersat View Post
    Do you believe USDCAD will contact 1.35 again?

  17. #17
    My advice is, trade when you know and maybe not when you feel.

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