BOC WILL BE CONSDIERING FURTHER RATE CUTS

BOC DOESN'T SEE A RECESSION, RATHER SLOW GROWTH

BOC SAYS WEAKER CAD DRIVEN BY USD STRENGTH

MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

US EIA: CRUDE OIL STOCKS EX SPR -1.42M TO 422.0M DEC 06 WK

BOC CUTS RATE 50BPS TO 3.25%, SEES GRADUAL APPROACH FROM HERE

MNI: US NOV CPI 0.3%, CORE 0.3%; CPI Y/Y 2.7%, CORE Y/Y 3.3%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BOC Says There's Room For Growth While Moving Back To Inflation Target

BOC
  • "With further and sustained easing in underlying inflation in recent months, we are more confident that inflation will continue to move closer to the target," BoC Governor Tiff Macklem says while speaking about the labour market Monday from Winnipeg.
  •  Macklem said there is no need for a large rise in unemployment. "With some slack in the economy, there is room for the Canadian economy to grow and add more jobs even as inflation continues to move closer to the target."
  • The BoC says wage growth is moderating, especially by measures it weights more heavily such as unit labour costs and the LFS fixed weight measure, but is looking for further moderation.
  • The Bank said the labour market is moving toward a soft-landing scenario. The Beveridge curve has shifted back to pre-pandemic levels as vacancies have come down without a large increase in unemployment. 
  • "With an aging population and limits to how many immigrants we can successfully absorb each year, improving our productivity growth will become more important to sustaining trend growth."
  • Macklem said there's room to slow the growth of non-permanent residents without causing significant labour shortages.
  • Earlier this month the BOC led the G7 with a rate cut and Macklem had said more cuts are possible if the economy progresses as expected. He didn't repeat that explicit guidance in the speech but has a press conference afterwards. 
Homepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.