Canada's plan to spend an extra C$6.1 billion ($4.5 billion) in the next five months may undermine the central bank's effort to curb inflation, despite Finance Minister Chrystia Freeland's vow not to make the job of monetary policy harder, analysts said.
"I would have rather seen them totally toeing the line on spending, if not shrink it somewhat, so that maybe we would have less by way of cumulative rate hikes going forward," said Derek Holt, vice president of capital markets economics at Scotiabank.Money markets are now leaning toward the BoC raising its policy rate by half a percentage point on Dec. 7, a move that would come on top of the 350 basis points worth of tightening it has already undertaken since March.
Indeed, economists said the government's baseline expectations for 0.7% growth next year were optimistic, and the reality was likely to be closer to the 0.9% contraction forecast in its downside scenario. Scotiabank estimates the combined stimulus measures by the provinces over the coming quarters will top C$16 billion, while the federal government has announced C$22.9 billion in new spending for this year and next since its April budget.has eased to 6.9% from a recent peak of 8.1%, it is still well above the BoC's 2% target, and underlying pressures are proving sticky.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Thanksgiving dinner could take a bigger bite out of wallets this yearA 15-pound turkey is reported to be $6 more than last year, according to an Auburn economist.
Weiterlesen »
UK to reveal stealth tax raid on pensions later this month-The TelegraphBritish Prime Minister Rishi Sunak and finance minister Jeremy Hunt plan to reveal a stealth tax raid on pensions later this month, The Telegraph reported on Friday.
Weiterlesen »
JPMorgan executes first DeFi trade on a public blockchain: Finance RedefinedTop 100 DeFi tokens had a bullish first week with majority of the tokens trading in green and the total value locked in DeFi protocols surged above $52 billion,
Weiterlesen »
JP Morgan executes first DeFi trade on a public blockchain: Finance RedefinedThe first week of November was all about traditional financial institutions and banking giants executing their first DeFi transaction, however, the week was also filled with conspiracy theories read more to know why!
Weiterlesen »
Goldman Sachs Launches Data Service to Help Investors Analyze Crypto Markets – Finance Bitcoin NewsGoldman Sachs has launched a new classification system to help investors analyze crypto markets. cryptocurrency coinmetrics MSCI
Weiterlesen »
Fireblocks Head of Web3: Traditional finance is diving deeper into cryptoTraditional financial firms are exploring crypto more deeply, said Fireblocks’ Head of Web3, with some now running validators.
Weiterlesen »