-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI EUROPEAN MARKETS ANALYSIS: China Equities Lower Post CEWC
MNI EUROPEAN OPEN: Sharp Fall In China Bond Yields Continues
MNI: BOC Minutes Say Some Thought Another Hike Would Be Needed
Bank of Canada officials were split on whether high-for-long interest rates would restore price stability or further tightening would be needed, according to minutes published Wednesday of the October 25 decision, which held borrowing costs at the highest since 2001.
"Some members felt that it was more likely than not that the policy rate would need to increase further to return inflation to target," according to the Summary of Deliberations. "Others viewed the most likely scenario as one where a 5% policy rate would be sufficient to get inflation back to the 2% target, provided it was maintained at that level for long enough." The Governing Council that sets borrowing costs has six members.
Most investors and economists predict the Bank is done after 10 earlier hikes and see a cut around the middle of next year. Governor Tiff Macklem has said it's far too soon to think about cuts but rates could move before inflation returns to 2% if there's evidence prices are stabilizing around that target. The Bank says it will take until 2025 to get inflation back in line.
Officials last month saw increasing evidence consumers were pulling back on interest-sensitive spending and of a cooling job market, even with inflation risks growing amid factors such as higher crude oil prices, the minutes showed.
HOUSING SUPPLY FOCUS
That led to "a strong consensus" that the Governing Council should be patient, while agreeing "to revisit the need for a higher policy rate at future decisions." With inflation slow to return to target, officials reiterated they need to see continued progress to be assured monetary policy is returning price gains to target. (See: MNI INTERVIEW: BOC Path Tied To Core Prices- Laurier's Siklos)
Discussions also focused on Canada's housing squeeze, calling it "an ongoing structural shortage" of supply and under more pressure from a surge in population. The government recently said it would "stabilize" immigration in a few years after record inflows.
"Given that increasing the supply of housing enough to substantially narrow the shortfall will take time, shelter price inflation could continue to contribute more than normal to overall inflation for some time," the report said.
The Bank began publishing minutes this year following an IMF recommendation, and doesn't provide vote tallies in a system where only the governor is legally responsible for policy. Officials often say they make decisions by consensus.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.