๐ŸšจBank of Canada Update: Essential Highlights

๐ŸšจBank of Canada Update: Essential Highlights

The Bank of Canada stands firm on its policy rate and continues quantitative tightening. Check out these must-know takeaways:

1๏ธโƒฃ Policy Rate & QT:

๐ŸŽฏ Overnight rate is held at 4.5%, Bank Rate at 4.75%, and the deposit rate at 4.5%
๐Ÿ”’ Quantitative tightening continues for a restrictive stance
๐Ÿ“ˆ Ready to raise policy rate if needed to reach the 2% inflation target

2๏ธโƒฃ Global Economic Situation:

๐ŸŒ Easing inflation: lower energy prices, normalized supply chains, tighter policy
โš–๏ธ Core inflation in advanced economies indicates ongoing price pressures ๐Ÿ‡บ๐Ÿ‡ธ๐Ÿ‡ช๐Ÿ‡บ US & Europe growth is stronger than expected but set to weaken

3๏ธโƒฃ Canadian Economic Outlook:

๐Ÿ“ˆ Demand exceeds supply, tight labour market
๐ŸŒฑ Stronger-than-projected Q1 growth 
๐Ÿ”ฎ GDP growth weak in 2023, with gradual improvement in 2024
๐Ÿ“Š Economy to grow by 1.4% in 2023, 1.3% in 2024, and 2.5% in 2025

4๏ธโƒฃ Inflation Expectations:

๐Ÿ“‰ CPI inflation at 5.2% in Feb, dropping to ~3% mid-year
๐ŸŽฏ Gradual decline to 2% target by the end of 2024
โš ๏ธ Challenges: slow expectation adjustments, elevated service price inflation & wage growth

The Bank is dedicated to restoring Canadian price stability, keeping a close eye on core inflation and key indicators.

๐Ÿ—“๏ธMark your calendar for the next overnight rate target announcement on June 7, 2023, and the Monetary Policy Report on July 12, 2023! ๐Ÿ””๐Ÿ”ฅ

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