Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Alan Rice
Oct 14, 2022 9:16PM ET
"....higher rates." -(or higher inflation).
0
0
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data
Bank of Canada says strong U.S. dollar could mean higher rates
© Reuters. FILE PHOTO: Governor of the Bank of Canada Tiff Macklem walks outside the Bank of Canada building in Ottawa, Ontario, Canada June 22, 2020. REUTERS/Blair Gable/File Photo
By Julie Gordon and Steve Scherer
OTTAWA (Reuters) -A persistently strong U.S. dollar, which makes imports and travel more expensive for Canadians, could mean the Bank of Canada will have "more work to do" on interest rates, Governor Tiff Macklem said on Friday, indicating further increases.
Macklem, speaking after International Monetary Fund and World Bank meetings in Washington, also said there was broad consensus at the annual gathering that hot inflation remains the most immediate threat to current and future prosperity.
"In the last six weeks, two months or so, we've seen a further leg up in the U.S. dollar. The Canadian dollar has not kept up," Macklem told reporters.
"Certainly if it persists ... that will mean that, other things equal, we're going to have more work to do on interest rates. We'll be watching that closely," Macklem said.
The Canadian dollar has tumbled 8.5% versus the U.S. dollar since August as aggressive interest rate hikes by the Federal Reserve and financial market volatility triggered gains for the safe-haven greenback.
Macklem also reiterated that interest rates would need to go higher still and said how high, and for how long, would depend on both the domestic and international pressures driving rapid price gains, along with longer term inflation expectations.
The Bank of Canada has raised its policy rate by 300 basis points since March, one of its steepest and fastest tightening cycles ever. Money markets are leaning toward a 50-bp increase on Oct. 26, though bets on a larger 75-bp move have inched up.
Inflation edged down to 7.0% in August and analysts surveyed by Reuters expect another drop to 6.8% when the September data is published next week. At the same time, underlying price pressures have proven sticky.
Macklem said the central bank will be watching the data closely, but said that even if inflation edges down further it would still remain far above the 2% target.
"What's not going to change in two weeks is the economy is still going to be clearly in excess demand, we're still going to have a very tight labor market and inflation. I'd love to see some good developments but it's still going to be too high," Macklem said.
Related Articles
Comments (2)
Den Bull
Oct 14, 2022 5:41PM ET
Invest with strength and effective strategies and be a successful investor. I've Trusted the process and opportunity of trading not only giving up but over trying being the key . I got good recommendations about a mamumitting woman who helped me in winning my success and managed my trading intelligently Using the RIO (RETURN OF INVESTMENT) for the sake of making Profit and not loss. Trade with a winning platform acquiring Trading strategies from a reputable manager "_CHLOE.HITCHMAN_" on 🅸🅽🆂🆃🅰🅶🆁🅰🅼
And +1(707)203-2460 on 🆆🅷🅰🆃🆂🅰🅿🅿 She welcome all form of investments specifically stocks and all forms of crypto currencies investment
0
0
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.