{"id":36521,"date":"2022-10-26T13:59:00","date_gmt":"2022-10-26T12:59:00","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=36521"},"modified":"2022-10-27T14:04:32","modified_gmt":"2022-10-27T13:04:32","slug":"market-wrap-bank-of-canada-act-as-expected","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/","title":{"rendered":"Market Wrap – Bank of Canada act as expected"},"content":{"rendered":"\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t
\n\t\t\t\t

The Bank of Canada increased rates by 50 basis, less than the 75 basis points expected. The hike brought its target for the overnight rate to 3\u00be%, with the Bank Rate at 4% and the deposit rate at 3\u00be%. The Bank is also continuing its policy of quantitative tightening.<\/p>

In a day of US dollar selling the USDCAD<\/a> pair sold-off. The greenback was hit broadly and the smaller than expected hike from the BOC did little to stem the bleeding.<\/p>

The central bank noted that the strength of the\u00a0US dollar<\/a> is adding to inflationary pressures in many countries. Tighter monetary policies aimed at controlling inflation are weighing on economic activity around the world. As economies slow and supply disruptions ease, global\u00a0inflation is expected to come down.<\/p>

The Bank projected no growth in the US economy through most of next year. They said that the euro area, the economy is forecast to contract in the quarters ahead, largely due to acute energy shortages.<\/p>

And they stated that China\u2019s economy appears to have picked up after the recent round of pandemic lockdowns, although ongoing challenges related to its property market will continue to weigh on growth.<\/p>

In terms of forecasts, the Bank projects that global growth will slow from 3% in 2022 to about 1\u00bd% in 2023, and then pick back up to roughly 2\u00bd% in 2024.<\/p>

Touching on domestic policy, the central bank said that the economy continues to operate in excess demand and labour markets remain tight. The demand for goods and services is still running ahead of the economy\u2019s ability to supply them, putting upward pressure on domestic inflation.<\/p>

Businesses continue to report widespread labour shortages, and, with the full reopening of the economy, strong demand has led to a sharp rise in the price of services.<\/p>

In the last three months, Canadian CPI inflation has declined from 8.1% to 6.9%, primarily due to a fall in gasoline<\/a> prices. However, price pressures remain broadly based, with two-thirds of CPI components increasing more than 5% over the past year.<\/p>

The Bank\u2019s preferred measures of core inflation are not yet showing meaningful evidence that underlying price pressures are easing. Near-term inflation expectations remain high, increasing the risk that elevated inflation becomes entrenched.<\/p>

Additionally, it was noted that \u201cQuantitative tightening is complementing increases in the policy rate. We are resolute in our commitment to restore price stability for Canadians and will continue to take action as required to achieve the 2% inflation target.\u201d<\/p>

The next scheduled date for announcing the overnight rate target is December 7, 2022. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on January 25, 2023.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

The Bank of Canada increased rates by 50 basis, less than the 75 basis points expected. The hike brought its target for the overnight rate to 3\u00be%, with the Bank Rate at 4% and the deposit rate at 3\u00be%. The Bank is also continuing its policy of quantitative tightening. In a day of US dollar […]<\/p>\n","protected":false},"author":3,"featured_media":36523,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[206,102,67,31],"yoast_head":"\nMarket Wrap - Bank of Canada act as expected - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Market Wrap - Bank of Canada act as expected Market Wrap - Bank of Canada act as expected\" \/>\n<meta property=\"og:description\" content=\"The Bank of Canada increased rates by 50 basis, less than the 75 basis points expected. The hike brought its target for the overnight rate to 3\u00be%, with the Bank Rate at 4% and the deposit rate at 3\u00be%. The Bank is also continuing its policy of quantitative tightening.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/\" \/>\n<meta property=\"og:site_name\" content=\"Youtrading UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/YouTradingEnglish\/\" \/>\n<meta property=\"article:published_time\" content=\"2022-10-26T12:59:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-10-27T13:04:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/10\/GettyImages-927534264.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"540\" \/>\n\t<meta property=\"og:image:height\" content=\"314\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Joel Frank\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Market Wrap - Bank of Canada act as expected Market Wrap - Bank of Canada act as expected\" \/>\n<meta name=\"twitter:description\" content=\"The Bank of Canada increased rates by 50 basis, less than the 75 basis points expected. The hike brought its target for the overnight rate to 3\u00be%, with the Bank Rate at 4% and the deposit rate at 3\u00be%. The Bank is also continuing its policy of quantitative tightening.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Joel Frank\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/\"},\"author\":{\"name\":\"Joel Frank\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/ac77fbbe0e8ed23d3dce1372e3663b96\"},\"headline\":\"Market Wrap – Bank of Canada act as expected\",\"datePublished\":\"2022-10-26T12:59:00+00:00\",\"dateModified\":\"2022-10-27T13:04:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/\"},\"wordCount\":447,\"publisher\":{\"@id\":\"https:\/\/youtrading.com\/en\/#organization\"},\"keywords\":[\"BoC\",\"Interest rates\",\"US Dollar\",\"USDCAD\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/\",\"url\":\"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/\",\"name\":\"Market Wrap - Bank of Canada act as expected - Youtrading UK\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/#website\"},\"datePublished\":\"2022-10-26T12:59:00+00:00\",\"dateModified\":\"2022-10-27T13:04:32+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/youtrading.com\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Market Wrap – Bank of Canada act as expected\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/youtrading.com\/en\/#website\",\"url\":\"https:\/\/youtrading.com\/en\/\",\"name\":\"Youtrading UK\",\"description\":\"Leaders in Trader Training\",\"publisher\":{\"@id\":\"https:\/\/youtrading.com\/en\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/youtrading.com\/en\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/youtrading.com\/en\/#organization\",\"name\":\"YouTrading\",\"url\":\"https:\/\/youtrading.com\/en\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/Logo-Youtrading-2020_preto.svg\",\"contentUrl\":\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/Logo-Youtrading-2020_preto.svg\",\"width\":2531,\"height\":570,\"caption\":\"YouTrading\"},\"image\":{\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/YouTradingEnglish\/\",\"https:\/\/www.instagram.com\/youtrading_english\/\",\"https:\/\/www.youtube.com\/channel\/UCc22BNolZpSd33lXc8utUvg\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/ac77fbbe0e8ed23d3dce1372e3663b96\",\"name\":\"Joel Frank\",\"description\":\"Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst, specialising in the coverage of how developments in the global economy impact financial asset classes such as FX, equities, bonds, and commodities. Joel also takes a keen interest in technical analysis.\",\"url\":\"https:\/\/youtrading.com\/en\/author\/joelfrank\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Market Wrap - Bank of Canada act as expected - Youtrading UK","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/","og_locale":"en_GB","og_type":"article","og_title":"Market Wrap - Bank of Canada act as expected Market Wrap - Bank of Canada act as expected","og_description":"The Bank of Canada increased rates by 50 basis, less than the 75 basis points expected. The hike brought its target for the overnight rate to 3\u00be%, with the Bank Rate at 4% and the deposit rate at 3\u00be%. The Bank is also continuing its policy of quantitative tightening.","og_url":"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/","og_site_name":"Youtrading UK","article_publisher":"https:\/\/www.facebook.com\/YouTradingEnglish\/","article_published_time":"2022-10-26T12:59:00+00:00","article_modified_time":"2022-10-27T13:04:32+00:00","og_image":[{"width":540,"height":314,"url":"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/10\/GettyImages-927534264.jpg","type":"image\/jpeg"}],"author":"Joel Frank","twitter_card":"summary_large_image","twitter_title":"Market Wrap - Bank of Canada act as expected Market Wrap - Bank of Canada act as expected","twitter_description":"The Bank of Canada increased rates by 50 basis, less than the 75 basis points expected. The hike brought its target for the overnight rate to 3\u00be%, with the Bank Rate at 4% and the deposit rate at 3\u00be%. The Bank is also continuing its policy of quantitative tightening.","twitter_misc":{"Written by":"Joel Frank","Estimated reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/#article","isPartOf":{"@id":"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/"},"author":{"name":"Joel Frank","@id":"https:\/\/youtrading.com\/en\/#\/schema\/person\/ac77fbbe0e8ed23d3dce1372e3663b96"},"headline":"Market Wrap – Bank of Canada act as expected","datePublished":"2022-10-26T12:59:00+00:00","dateModified":"2022-10-27T13:04:32+00:00","mainEntityOfPage":{"@id":"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/"},"wordCount":447,"publisher":{"@id":"https:\/\/youtrading.com\/en\/#organization"},"keywords":["BoC","Interest rates","US Dollar","USDCAD"],"articleSection":["Markets"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/","url":"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/","name":"Market Wrap - Bank of Canada act as expected - Youtrading UK","isPartOf":{"@id":"https:\/\/youtrading.com\/en\/#website"},"datePublished":"2022-10-26T12:59:00+00:00","dateModified":"2022-10-27T13:04:32+00:00","breadcrumb":{"@id":"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/youtrading.com\/en\/market-wrap-bank-of-canada-act-as-expected\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/youtrading.com\/en\/"},{"@type":"ListItem","position":2,"name":"Market Wrap – Bank of Canada act as expected"}]},{"@type":"WebSite","@id":"https:\/\/youtrading.com\/en\/#website","url":"https:\/\/youtrading.com\/en\/","name":"Youtrading UK","description":"Leaders in Trader Training","publisher":{"@id":"https:\/\/youtrading.com\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/youtrading.com\/en\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/youtrading.com\/en\/#organization","name":"YouTrading","url":"https:\/\/youtrading.com\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/youtrading.com\/en\/#\/schema\/logo\/image\/","url":"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/Logo-Youtrading-2020_preto.svg","contentUrl":"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/Logo-Youtrading-2020_preto.svg","width":2531,"height":570,"caption":"YouTrading"},"image":{"@id":"https:\/\/youtrading.com\/en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/YouTradingEnglish\/","https:\/\/www.instagram.com\/youtrading_english\/","https:\/\/www.youtube.com\/channel\/UCc22BNolZpSd33lXc8utUvg"]},{"@type":"Person","@id":"https:\/\/youtrading.com\/en\/#\/schema\/person\/ac77fbbe0e8ed23d3dce1372e3663b96","name":"Joel Frank","description":"Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst, specialising in the coverage of how developments in the global economy impact financial asset classes such as FX, equities, bonds, and commodities. Joel also takes a keen interest in technical analysis.","url":"https:\/\/youtrading.com\/en\/author\/joelfrank\/"}]}},"_links":{"self":[{"href":"https:\/\/youtrading.com\/en\/wp-json\/wp\/v2\/posts\/36521"}],"collection":[{"href":"https:\/\/youtrading.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/youtrading.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/youtrading.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/youtrading.com\/en\/wp-json\/wp\/v2\/comments?post=36521"}],"version-history":[{"count":0,"href":"https:\/\/youtrading.com\/en\/wp-json\/wp\/v2\/posts\/36521\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/youtrading.com\/en\/wp-json\/wp\/v2\/media\/36523"}],"wp:attachment":[{"href":"https:\/\/youtrading.com\/en\/wp-json\/wp\/v2\/media?parent=36521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/youtrading.com\/en\/wp-json\/wp\/v2\/categories?post=36521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/youtrading.com\/en\/wp-json\/wp\/v2\/tags?post=36521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}