MNI BRIEF: Fed's Goolsbee Sees Rates Down 'Fair Amount' In '25

MNI BRIEF: December Fed Cut 'Absolutely Not' Off Table - Daly

MNI China Daily Summary: Tuesday, Dec 3

MNI BRIEF: China-Based UK Firms Facing Challenges

MNI: PBOC Net Drains CNY248 Bln via OMO Tuesday

MNI: PBOC Sets Yuan Parity Higher At 7.1996 Tue; -1.92% Y/Y

EZ/UK T-Bill Calendar: Greece, EU Auction on Wednesday

EZ/UK Bond Supply Calendar: UK, Germany Auction on Wednesday

MNI: US BLS: JOLTS OPENINGS RATE 7.744M IN OCT

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

MNI POLICY: BOC Keeps `Appropriate' Rate 1.75%, Warns on Trade> 

By Greg Quinn
     OTTAWA (MNI) - The Bank of Canada amplified its warnings about 
global trade conflicts for a second meeting without giving a direct 
signal about cutting its key interest rate, saying unexpected domestic 
growth is keeping the economy on track.
     The target rate on overnight loans remained 1.75% where it's been 
all year, in line every prediction used to compile the MNI economist 
median. The one-page statement from Ottawa largely kept a key phrase 
about the rate being appropriate while saying the escalating U.S.-China 
trade fight has pushed down prices for exported commodities and inverted 
Canada's bond yield curve. 
     "In sum, Canada's economy is operating close to potential and 
inflation is on target," at 2%, policy makers led by Governor Stephen 
Poloz wrote in the decision. "However, escalating trade conflicts and 
related uncertainty are taking a toll on the global and Canadian 
economies. In this context, the curent degree of monetary policy 
stimulus remains appropriate."
     Other language in the statement signaled that trade risks may 
dominate the next decision due Oct. 30, a few days after Canada 
is set to hold a federal election. Dropping a reference to closely 
tracking Canada's energy industry, the statement said "Governing Council 
will pay particular attention to global developments and their impact on 
the outlook for Canadian growth and inflation."
     Days after U.S. President Donald Trump moved ahead with fresh 
tariffs on China, the BOC said trade policies have weakened global 
commerce and investment and sapped global "momentum" by more than the 
central bank predicted in July.
     Canada's economy showed unexpected strength in second-quarter GDP 
growth and in the latest inflation report for July, the central bank 
said, adding some of that appears temporary. The GDP report last 
Friday showed growth at a 3.7% annualized pace, the fastest in two 
years. Inflation was 2% in July, matching the BOC's target. 
--MNI Ottawa Bureau, +1-613-314-9647, greg.quinn@marketnews.com
[TOPICS: M$C$$$,MACDS$]
data-HeadlineData StoriesImpactDataPolicy NewsCanadaAPACChina Bank of Canada Market NewsHeadlineFixed Income BulletsForeign Exchange BulletsRegionNorth America
data-HeadlineData StoriesImpactDataPolicy NewsCanadaAPACChina Bank of Canada Market NewsHeadlineFixed Income BulletsForeign Exchange BulletsRegionNorth America
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.