Invesco Canada blog

Insights, commentary and investing expertise

Fed balance sheet normalization at last

The U.S. Federal Open Market Committee (the Fed) held interest rates steady at Wednesday’s meeting, with a target range of 1% – 1.25%. After preparing the markets over the last several meetings, the Fed finally announced they would begin their long-awaited balance sheet reduction plans in October 2017.

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Fed balance sheet normalization at last

Will the Fed start normalization this week?


September 19, 2017
Subject | Institutional | Invesco | Macro views

The dials of geopolitical and monetary risk are spinning in different directions across the globe. Of note in the U.S., markets are wondering whether glimmers of political bipartisanship bode well for reform legislation, and the Federal Reserve (Fed) is gearing up for what may be one of its most important meetings ever.

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Interest rate outlook: BoC moves firmly into hawkish camp

The Bank of Canada (BoC) has moved firmly into the hawkish camp, with a rate hike to 1% this month, leaving the market expecting one more rate hike this year. The benchmark rate was raised to 0.75% in July.1 Recent economic data continues to surprise to the upside.

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Uncertainty clouds view of global markets


September 12, 2017
Subject | Institutional | Invesco | Macro views

For the past several months, I’ve talked about disruption as a key theme for 2017 and argued that it would have three key sources this year, including geopolitics and monetary policy. Last week was emblematic of that theme, as geopolitical events and central bank decisions shared the spotlight.

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Surprise hike from hawkish BoC

In a move that surprised the market, the Bank of Canada (BoC) hiked the target overnight rate to 1% at today’s monetary policy meeting. This is the second hike in a row for the BoC. The market was not expecting the next rate hike until the Bank’s October meeting.

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