Bank of Canada maintains policy rate, continues quantitative tightening

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Bank of Canada maintains policy rate, continues quantitative tightening

The Bank of Canada today held its target for the overnight rate at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%.

www.bankofcanada.ca

 

[贾和平]

Today BOC said ( Paragraph5): " Economic growth is expected to strengthen gradually around the middle of 2024. In the second half of 2024, household spending will likely pick up and exports and business investment should get a boost from recovering foreign demand. " If so, do you expect interesting rate cut in March or June ( middle of 2024), or the second half of 2024? If BOC thinks about cut interest rate, it should have cut it right now because around middle to second half of 2024, the economy will be strengthening according to BOC's media release.

But the market, including the rate market can think the other way. Also, BOC can change its mind in the blink of an eye.


BOC meeting media release paragraph 5, " Economic growth is expected to strengthen gradually around the middle of 2024. In the second half of 2024, household spending will likely pick up and exports and business investment should get a boost from recovering foreign demand. Spending by governments contributes materially to growth through the year. Overall, the Bank forecasts GDP growth of 0.8% in 2024 and 2.4% in 2025, roughly unchanged from its October projection."