Press Conference: Monetary Policy Report – January 2023
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2022’s extraordinary cash flows are in the rear-view mirror for most mining companies. Strong balance sheets give the majors options in 2023. But valuations are constricting M&A ...
Inflation around the world remains high and broad-based, but in many countries it has receded from its peak, largely due to declines in energy prices. With continued easing in global supply chain disruptions, inflation in durable goods prices is also moderating. Economic activity in advanced economies has been stronger than expected, labour markets remain tight, and core inflation has yet to show sustained improvement. With inflation still too high, many central banks have continued to increase their policy rates to slow demand and bring inflation down. Russia’s invasion of Ukraine continues to disrupt commodity markets and affect global economic activity. China’s abrupt lifting of COVID-19 restrictions poses an upside risk to commodity prices. In Canada, higher interest rates are working their way through an overheated economy. It remains in excess demand, and this is putting upward pressure on some domestic prices. The labour market is still tight, and many businesses are finding it difficult to attract workers. Monetary policy is slowing demand, helping the economy rebala tweet at 10:01am: BOC: THE ECONOMIES OF THE UNITED STATES AND EUROPE ARE SLOWING, BUT THEY ARE PROVING MORE RESILIENT THAN PREDICTED IN THE OCTOBER MPR. tweet at 10:01am: BOC: CANADA'S GROWTH IS EXPECTED TO SLOW UNTIL THE MIDDLE OF 2023. tweet at 10:02am: BOC REITERATES THAT THE LIKELIHOOD OF A COUPLE OF QUARTERS OF SLIGHTLY NEGATIVE GROWTH IS ROUGHLY EQUAL TO THE LIKELIHOOD OF A COUPLE OF QUARTERS OF SLIGHTLY POSITIVE GROWTH. tweet at 10:06am: BOC: THERE IS MOUNTING EVIDENCE THAT TIGHT FISCAL POLICY IS SLOWING ACTIVITY, PARTICULARLY HOUSEHOLD SPENDING.
The Bank of Canada today increased its target for the overnight rate to 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank is also continuing its policy of ...
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tweet at 11:00am: BOC'S MACKLEM - WE ARE TURNING THE CORNER ON INFLATION, BUT ARE STILL A LONG WAY FROM OUR TARGET - https://t.co/wXVagA44VK tweet at 11:01am: BOC'S GOV. MACKLEM: THE BANK OF CANADA HAS QUICKLY RAISED INTEREST RATES; NOW IS THE TIME TO PAUSE AND CONSIDER WHETHER MONETARY POLICY IS SUFFICIENTLY RESTRICTIVE. tweet at 11:00am: <CAD=>:*MACKLEM SAYS FULL EFFECT OF HIKES TO DATE 'IS STILL TO COME' *MACKLEM: RATE PAUSE IS 'CONDITIONAL ON ECONOMIC DEVELOPMENTS' *HIKING TOO FAR RISKS UNDERSHOOTING INFLATION TARGET: MACKLEMMacklem: Monetary Policy Report Press Conference Opening Statement Good morning. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss today’s policy announcement and the Bank’s Monetary Policy Report (MPR). Our policy decision today has two elements. First, we raised our policy interest rate by 25 basis points to 4.50% and we are continuing quantitative tightening. Second, if economic developments evolve broadly in line with the forecast we published today, we expect to hold the policy rate at its current level while we assess the impact of the cumulative 425-basis-point increase in our policy rate. We have raised rates rapidly, and now it’s time to pause and assess whether monetary policy is sufficiently restrictive to bring inflat tweet at 11:04am: BoC’s Macklem: If We Need To Do More To Get Inflation To The 2% Target, We Will; If Upside Risks Materialise We Are Prepared To Raise Rates Further
tweet at 11:16am: BOC'S GOV. MACKLEM: IF INFLATION FALLS, IT WILL BE PROOF THAT BOC HAS DONE ENOUGH. tweet at 11:15am: BOC'S GOV. MACKLEM: WHEN ASKED WHAT HE WOULD NEED TO SEE TO RAISE INTEREST RATES AGAIN, HE SAYS HE WOULD LOOK FOR AN ACCUMULATION OF EVIDENCE. tweet at 11:17am: BOC'S GOV. MACKLEM: SERVICE INFLATION WILL TAKE LONGER TO DECLINE. tweet at 11:17am: Boc's gov. macklem: service inflation will take longer to decline. tweet at 11:20am: BOC’S MACKLEM: IT IS ‘FAR TOO EARLY TO TALK ABOUT RATE CUT’; INFLATION STILL 6% VS. 2% TARGET #interestrates #inflation #Canada #economy
tweet at 11:29am: BOC'S GOV. MACKLEM: THE LIKELIHOOD OF A WAGE-PRICE SPIRAL HAS DECREASED. tweet at 11:32am: BOC'S GOV. MACKLEM: IT WILL NOT FEEL GOOD IF THE ECONOMY STALLS, BUT WE NEED THIS PERIOD OF NO GROWTH. tweet at 11:34am: BOC'S GOV. MACKLEM: THERE MAY BE A MILD RECESSION, BUT IT WILL NOT BE A CONTRATCION.