Invesco Canada blog

Insights, commentary and investing expertise

The Fed finally hikes rates – what does it mean?

The U.S. Federal Reserve (Fed) hiked rates 0.25% today, for only the second time in this cycle, to a range of 0.5% – 0.75%. The statement that accompanied the meeting made note of a strengthening of the labour market, moderate growth and improving inflation. Additionally, the Fed views risks to the economy as “roughly balanced”.

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BoC holds rate, but downgrades growth outlook

The Bank of Canada (BoC) left the overnight lending rate unchanged at 0.5% Wednesday. Generally the tone of the meeting was dovish as Bank Governor Stephen Poloz acknowledged that the Governing Council actively discussed the possibility of adding additional monetary stimulus at the meeting as economic slack continues to exert downward pressure on inflation. In spite of that acknowledgement, the Bank did not indicate that a future rate cut was imminent.

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Fed holds rate, signals likely December hike

Today’s much-awaited Federal Reserve (Fed) meeting and press conference came and went with what I’d describe as few surprises. The Fed left the federal funds rate unchanged (target range of 0.25% – 0.50%) but saw three Federal Reserve Bank presidents (Esther L. George, Loretta Mester and Eric Rosengren) cast dissenting votes in favour of a hike.

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BoC holds rate, opens the door to future cuts

The Bank of Canada (BoC) announced yesterday that it is maintaining the target overnight rate at 0.5%. The decision to leave the overnight rate unchanged was generally expected by the market, but the BoC statement included language that was more dovish than previous releases.

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