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Bank of Canada council reassesses if gradual rate hikes still appropriate

Published 09/06/2018, 03:04 PM
© Reuters.  Bank of Canada council reassesses if gradual rate hikes still appropriate
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  • Bank of Canada's Governing Council took into account several factors In coming to its decision to maintain its benchmark interest rate on Wednesday. Specifically, they "discussed whether the gradual approach to raising rates that we have been taking over the past year remains appropriate," Senior Deputy Governor Carolyn A. Wilkins said in a speech Thursday.
  • Besides inflation, they considered household debt, the flattening yield curve, and U.S./Canada trade issues.
  • "The factors that are pushing inflation to the top of our target band appear to be temporary and not signs of excess demand," she said at a speed in Regina, Saskatchewan Thursday.
  • "We still acknowledge that there may be more room to grow without causing inflation than we have built into our forecast," Wilkins added.
  • The upshot: The council agreed the gradual approach it's taking is still appropriate.
  • Previously: Bank of Canada keeps rates on hold, says more hikes warranted (Sept. 5)
  • ETFs: FXC, EWC, QCAN, FCAN, HEWC, BBCA, FLCA
  • Now read: U.S. dollar weakens against yen after U.S. charges North Korean hackers


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