{"id":1676252,"date":"2022-10-06T13:52:28","date_gmt":"2022-10-06T17:52:28","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1676252"},"modified":"2022-10-06T13:53:14","modified_gmt":"2022-10-06T17:53:14","slug":"bank-of-canadas-hawkish-message-bolsters-case-for-another-large-rate-hike","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bank-of-canadas-hawkish-message-bolsters-case-for-another-large-rate-hike\/","title":{"rendered":"Bank of Canada\u2019s hawkish message bolsters case for another large rate hike"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbank-of-canadas-hawkish-message-bolsters-case-for-another-large-rate-hike%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1676252&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Julie Gordon and David Ljunggren<\/p>\n<p>OTTAWA (Reuters) -The Bank of Canada made clear on Thursday it will not yet be pivoting away from its current rapid pace of interest rate increases, with Governor Tiff Macklem saying there is no sign underlying inflation is easing.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>The central bank has hiked its policy rate by 300 basis points to 3.25% since March, with four of those five increases larger than 25 basis points. <\/p>\n<p>\u201cWe have yet to see clear evidence that underlying inflation has come down. When combined with still-elevated near-term inflation expectations, the clear implication is that further interest rate increases are warranted,\u201d Macklem told a business audience in Halifax.<\/p>\n<p>\u201cSimply put, there is more to be done. We will need additional information before we consider moving to a more finely balanced decision-by-decision approach.\u201d<\/p>\n<p>Macklem added that while forward-looking indicators suggest that Canada\u2019s economy is starting to slow, labor markets remain tight and demand is still outstripping supply.<\/p>\n<p>Economists said while there has been data in recent weeks that could have shifted the central bank to take a less hawkish stance, on Thursday the tone was clear.<\/p>\n<p>\u201cDon\u2019t expect the Bank of Canada to shy away from outsized interest rate increases any time soon,\u201d said Royce Mendes, head of macro strategy at Desjardins Group.<\/p>\n<p>Following the governor\u2019s remarks, money market bets swung more heavily toward another 50-bp increase versus a 25-bp move at the upcoming Oct. 26 decision. <\/p>\n<p>Macklem later said whether the central bank can cool the economy enough to tame inflation without triggering a recession will depend, in part, on how sticky price increases are in Canada.   <\/p>\n<p>\u201cThere is a path to a soft landing, but it is a narrow path and there are risks,\u201d he said, answering audience questions.     <\/p>\n<p>Inflation in Canada eased to 7.0% in August, with core inflation running at about 5%, which Macklem said was too high.<\/p>\n<p>He added the central bank will be watching its core measures of inflation closely \u201cfor clear evidence of a turning point,\u201d particular as attention shifts to domestic price pressures.<\/p>\n<p>But the bank\u2019s focus will be on the core measures known as CPI-trim and CPI-median, Macklem said, noting the central bank was reassessing the CPI-common measure due to recent large revisions.<\/p>\n<p>Reuters reported this week that economists and markets were scrambling for a reliable measure of underlying inflation as large and frequent revisions have dented the credibility of CPI-common. <\/p>\n<p>\u201cCPI-common is becoming more difficult to use in real time because it has been subject to large historical revisions,\u201d Macklem said. \u201cWith this in mind \u2026 we are reassessing CPI-common.\u201d<\/p>\n<p>The Canadian dollar was trading 1% lower at 1.3740 to the greenback, or 72.78 U.S. cents.<\/p>\n<p> (Reporting by Julie Gordon and David Ljunggren in Ottawa; Additional reporting by Fergal Smith in Toronto; Editing by Mark Porter and Andrea Ricci)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/business\/bank-of-canada-says-2\/attachment\/a-sign-is-pictured-outside-the-bank-of-canada-building\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/tagreuters.com2022binary_LYNXMPEI950W8-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI950W8-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Julie Gordon and David Ljunggren OTTAWA (Reuters) -The Bank of Canada made clear on Thursday it will not yet be pivoting away from its current rapid pace of interest<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1676252","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1676252","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1676252"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1676252\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1676252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1676252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1676252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}