Austral and Glencore partner to boost copper production

The Bank of Canada today increased its target for the overnight rate to 4¾%, with the Bank Rate at 5% and the deposit rate at 4¾%. The Bank is also continuing its policy of quantitative tightening. Globally, consumer price inflation is coming down, largely reflecting lower energy prices compared to a year ago, but underlying inflation remains stubbornly high. While economic growth around the world is softening in the face of higher interest rates, major central banks are signalling that interest rates may have to rise further to restore price stability. In the United States, the economy is slowing, although consumer spending remains surprisingly resilient and the labour market is still tight. Economic growth has essentially stalled in Europe but upward pressure on core prices is persisting. Growth in China is expected to slow after surging in the first quarter. Financial conditions have tightened back to those seen before the bank failures in the United States and Switzerland. Canada’s economy was stronger than expected in the first quarter of 2023, with GDP growth of 3.1%. Consumption growth was surprisingly strong and broad-based, even after accounting for the boost from population gains. Demand for services continued to rebound. In addition, spending on interest-sensitive goods increased and, more recently, housing market activity has picked up. The labour market remains tight: higher immigration and participation rates are expanding the supply of workers but new workers have been quickly hired, reflecting continued strong demand for labour. Overall, excess demand in the economy looks to be more persistent than anticipated. CPI inflation ticked up in April to 4.4%, the first increase in 10 months, with prices for a broad range of goods and services coming in higher than expected. Goods price inflation increased, despite lower energy costs. Services price inflation remained elevated, reflecting strong demand and a tight labour market. The Bank continues to expect C tweet at 10:00am: BoC statement changes https://t.co/xEvK0UPr7R tweet at 10:02am: BOC STATEMENT REMOVES APRIL LANGUAGE ABOUT HOW BANK IS PREPARED TO RAISE RATES FURTHER IF NEEDED. tweet at 10:03am: BOC: UNDERLYING INFLATION REMAINS STUBBORNLY HIGH GLOBALLY, MAJOR CENTRAL BANKS ARE SIGNALING THAT RATES MIGHT HAVE TO RISE FURTHER TO RESTORE PRICE STABILITY. tweet at 10:04am: BoC: Stronger GDP, CPI Uptick Cited As Reasons For Rate Hike - Concerns Have Increased That Inflation May Get Stuck Above 2% - To Assess Incoming Data, BoC Is ‘Resolute On Curbing Inflation’ - Excess Demand Looks ‘More Persistent’ Than Expected $USDCAD