Investment Executive on Nostr: Canadian interest rates don't have to match U.S. or global rates: Macklem ========== ...
Canadian interest rates don't have to match U.S. or global rates: Macklem
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Bank of Canada governor Tiff Macklem says Canadian interest rates don't have to match U.S. or global rates, but they need to stay within a certain ballpark. The Bank of Canada is widely expected to begin lowering its policy rate in the coming months, while forecasters expect the U.S. Federal Reserve to take longer. The Bank of Canada's key interest rate is currently sitting at 5%, which is below the Federal Reserve's target range for the funds rate of 5.25–5.5%. The U.S. Federal Reserve held interest rates on Wednesday and signaled it won't cut them until it is more confident that the annual inflation rate is headed back to the 2% target. In contrast, the Bank of Canada has been encouraged by recent progress on the inflation front. Core measures of inflation have eased over the last few months. Canada's annual inflation rate was 2.9% in March, below the U.S.'s 3.5%. Macklem has said that the Bank of Canada is seeing the right trends to begin lowering interest rates, but it wants to see those trends sustained for longer. Forecasters widely expect the Bank of Canada to begin lowering its policy rate in June or July.
#BankOfCanada #InterestRates #TiffMacklem #UsFederalReserve
https://www.investmentexecutive.com/news/industry-news/canadian-interest-rates-dont-have-to-match-u-s-or-global-rates-macklem/
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Bank of Canada governor Tiff Macklem says Canadian interest rates don't have to match U.S. or global rates, but they need to stay within a certain ballpark. The Bank of Canada is widely expected to begin lowering its policy rate in the coming months, while forecasters expect the U.S. Federal Reserve to take longer. The Bank of Canada's key interest rate is currently sitting at 5%, which is below the Federal Reserve's target range for the funds rate of 5.25–5.5%. The U.S. Federal Reserve held interest rates on Wednesday and signaled it won't cut them until it is more confident that the annual inflation rate is headed back to the 2% target. In contrast, the Bank of Canada has been encouraged by recent progress on the inflation front. Core measures of inflation have eased over the last few months. Canada's annual inflation rate was 2.9% in March, below the U.S.'s 3.5%. Macklem has said that the Bank of Canada is seeing the right trends to begin lowering interest rates, but it wants to see those trends sustained for longer. Forecasters widely expect the Bank of Canada to begin lowering its policy rate in June or July.
#BankOfCanada #InterestRates #TiffMacklem #UsFederalReserve
https://www.investmentexecutive.com/news/industry-news/canadian-interest-rates-dont-have-to-match-u-s-or-global-rates-macklem/