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.
Investors see a too-aggressive Bank of Canada as a bigger risk for triggering a potential recession than being too passive and having to do more later to rebalance the economy, according to a survey the central bank released Monday.
Sixty-one percent of respondents said "faster-than-expected normalization would result in the most severe negative impact" including a potential recession. Another 31% said a slow normalization "could reduce the credibility of central banks and result in unanchored inflation expectations" and lead to an even bigger recession later.
Results were gathered in February and March, and the Bank added questions to this edition around monetary policy. Policy risk was ranked behind Russia's invasion of Ukraine and potential cyber attacks on the financial system.
The Bank needs to raise rates faster after being late to curb inflation and the economy faces the risk of a hard landing, a former BOC research fellow has told MNI. (See: BOC Needs Faster Hikes, Risks Slump-Ex Adviser)
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.