BoC 'facing major dilemma' on rate hike timeline: CIBC's Tal
BNN Bloomberg
The Bank of Canada has some difficult realities to weigh ahead of its Jan. 26 interest rate decision.
The Bank of Canada has some difficult realities to weigh ahead of its Jan. 26 interest rate decision.
On one hand, the central bank’s latest Business Outlook Survey highlighted how concerns are continuing to mount in the business community about prolonged inflation. On the other hand, the Canadian economy is dealing with tighter lockdowns to curb the spread of the Omicron COVID-19 variant.
“That's a major dilemma” for the Bank of Canada, according to Benjamin Tal, deputy chief economist at CIBC Capital Markets.
“We are in the middle of the winter. Omicron is still with us. It will be with us throughout the winter. So if you're the Bank of Canada - so you want to start raising interest rates in the middle of this madness?” Tal said in an interview on Monday.
“At the same time, the business community is telling you to start moving.”
The Bank of Canada’s sole mandate is to keep inflation within a range of one to three per cent, and Governor Tiff Macklem has said he’s willing to let inflation run hot for a short period of time. But consumer prices have now been rising above the central bank’s target for nearly a year now, posing a threat to its credibility.
From rolled steel to kitchen cabinets, Canadian businesses hit by targeted U.S. tariffs are struggling to respond as the trade war drags into its second year.
Global benchmarks mostly rebounded Tuesday, in a mood of cautious relief after U.S. President Donald Trump said the United States has talked with Iran about a possible end to their war.
It’s that time of the year again, tax time, a time to file your annual return with the Canadian Revenue Agency.
Gold seen as overbought as Iran tensions ease, with falling oil prices lifting stocks and shifting investor sentiment toward risk assets.
Stock markets in Canada and the U.S. rallied after President Donald Trump said the United States has talked with Iran about a possible end to the war.
A cautious relief swept through financial markets Monday after President Donald Trump said the United States has talked with Iran about a possible end to their war.
A pipeline leak in Sarnia, Ont., has been located more than a week after a sheen reportedly turned up on the St. Clair River.
U.S. President Donald Trump on Monday said the U.S. was talking with a “respected” Iranian leader and claimed the Islamic Republic was eager for a deal to end the war. He also extended a deadline for Iran to reopen the crucial Strait of Hormuz or face attacks on its power plants, saying it has an additional five days.
Berkshire Hathaway, the conglomerate built by Warren Buffett, is buying a 2.49 per cent stake in Japanese insurer Tokio Marine Holdings for about US$1.8 billion as part of a new strategic partnership, deepening its financial commitment to Japan.
Relief is ripping through financial markets after U.S. President Donald Trump said the United States has talked with Iran about a possible end to their war, despite Iran’s denials.
Asset management giant BlackRock’s CEO Larry Fink urged clients to stay invested despite ongoing market volatility, and highlighted that artificial intelligence is reshaping investment strategies and the broader economy.
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