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Investors blindsided as Bank of Canada's key inflation gauge fails

Investors blindsided as Bank of Canada’s key inflation gauge fails

By Julie Gordon and Fergal Smith OTTAWA (Reuters) – Canadian economists are struggling to find a reliable gauge to track core inflation as large and frequent revisions have eroded the credibility of the Bank of Canada’s key gauge, even as the central bank said it was sticking to its core measures. The Bank of Canada …

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History has taught the Bank of Canada what happens when it can't handle high inflation

History has taught the Bank of Canada what happens when it can’t handle high inflation

OTTAWA – Canadians are seeing the cost of borrowing rise rapidly as the Bank of Canada takes historic action to slow soaring prices, learning from history when central banks let inflation run wild. The Bank of Canada recently raised its key interest rate by a full percentage point — the biggest single rate hike in …

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How does the Bank of Canada rate hike affect variable rate mortgages?

How does the Bank of Canada rate hike affect variable rate mortgages?

An aerial view of housing is shown in Calgary on June 22, 2013.Jonathan Hayward/The Canadian Press The Bank of Canada raised its benchmark rate by a full percentage point on Wednesday, the most aggressive rate hike since 1998 and an even bigger jump than investors and Bay Street economists had expected. It is the fourth …

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GDP disappointed, but the Bank of Canada is unlikely to change the trajectory of rates

Canada’s economic growth slowed in the first quarter of 2022, but accelerating demand has shown why the Bank of Canada is unlikely to deviate from its rate of rapid interest rate increases. After adjusting for inflation, gross domestic product grew at an annualized rate of 3.1 percent, decelerating from 6.6 percent in the fourth quarter …

GDP disappointed, but the Bank of Canada is unlikely to change the trajectory of rates Read More »

GDP disappointed, but the Bank of Canada is unlikely to change the trajectory of rates

Canada’s economic growth slowed in the first quarter of 2022, but accelerating demand has shown why the Bank of Canada is unlikely to deviate from its rate of rapid interest rate increases. After adjusting for inflation, gross domestic product grew at an annualized rate of 3.1 percent, decelerating from 6.6 percent in the fourth quarter …

GDP disappointed, but the Bank of Canada is unlikely to change the trajectory of rates Read More »