Bank of Canada held interest rate partly due to upcoming mortgage renewals: Macklem
Global News
Macklem appeared before a Senate committee following the Bank of Canada's most recent interest rate decision and monetary policy report.
Bank of Canada governor Tiff Macklem says the central bank held its key interest rate at five per cent in part because of the effect a wave of upcoming mortgage renewals is expected to have on the economy.
Macklem appeared before a Senate committee alongside senior deputy governor Carolyn Rogers following the Bank of Canada’s most recent interest rate decision and monetary policy report.
The governor says the central bank maintained its policy rate because it knows the effect of previous rate hikes are still filtering through the economy, including through mortgage renewals.
As more people renew their mortgages at higher interest rates, households are expected to feel the squeeze from rate hikes more directly, leading to more softness in the economy.
Macklem says the Bank of Canada does not want to see the country enter a recession, but a period of slower growth is necessary to fight inflation.
Recent data from Statistics Canada suggests the economy may have teetered into a mild technical recession as higher interest rates weigh on spending.
Canada's labour market added roughly 15,000 jobs in October, enough to keep the unemployment rate steady at 6.5 per cent in the month.
A weaker Canadian dollar tied to Donald Trump's victory could be inflationary north of the border, which could make our central bank more hesitant to cut rates too quickly.
The employee was indicted for allegedly distributing personal information of TD Bank customers, the latest criminal probe to hit the U.S. arm of the Canadian financial institution.
Stock markets were rising broadly higher on news of Donald Trump's U.S. election victory on Wednesday. Here's how investors say you should adjust your portfolio.
The Bank of Canada's Carolyn Rogers says improving housing affordability ultimately requires reaching a balance between supply and demand, which she says will take time.
Donald Trump was previously a crypto skeptic but changed his mind and took a favorable view of cryptocurrencies ahead of the election.
Canadians continue to make payments on their mortgages, but there are signs of stress bubbling up on other credit products, which CMHC warns could continue to spread to home loans.
Canadians continue to make payments on their mortgages, but there are signs of stress bubbling up on other credit products, which CMHC warns could continue to spread to home loans.
Bell Canada will use $4.2 billion of the proceeds it got from selling its stake in Maple Leaf Sports & Entertainment to Rogers Communications to fund this acquisition.
With the costs of pet ownership rising, the Competition Bureau sees an opportunity to drive down the prices of medication by expanding distribution to pharmacies.
Major North American carriers with international operations are cashing in on a booming demand for overseas travel and a resurgence in business bookings.