The Bank of Canada (BoC) left the target rate unchanged at 1.75% at Wednesday’s meeting. While the outcome was expected, the tone of the statement was certainly on the dovish side.
Comments Off on Bank of Canada shifts back to data dependency
The Federal Reserve (Fed) held the target range for the U.S. federal funds at 2.25%-2.50% at its meeting on Wednesday. This outcome was in line with market expectations. In addition, the Fed indicated they do not expect to hike rates again in 2019 and only expect one hike in 2020.
Comments Off on The Fed delivers on the dovish side
The Bank of Canada (BoC) left the overnight rate unchanged at 1.75% at its December 5 meeting. The tone around the message softened dramatically from the previous meeting in October.
Comments Off on Bank of Canada walks back from impending rate hike
The Bank of Canada (BoC) announced it hiked the overnight rate by 0.25% to 1.75% at today’s meeting. This is the third 0.25% hike by the BoC this year. As the economy continues to perform near its long-term potential, the BoC believes it will need to increase rates to a neutral level to achieve its inflation target of 1-3%. It currently estimates a neutral rate level to be in the range of 2.5%-3.0%.
Comments Off on BoC takes another step on the way to “neutral”
The U.S. Federal Open Market committee (Fed) hiked the federal funds rate by a quarter percentage point at Wednesdays meeting. This is the third rate hike this year, putting the new target range at 2.00%-2.25%. The market had fully priced in today’s move well ahead of the meeting.
Comments Off on Fed continues gradual hikes
The U.S. Federal Open Market committee (Fed) continued their recent gradual hiking cycle by increasing the federal funds rate by 0.25 percentage points at today’s meeting. The target range after the hike is now 1.75%-2.00%. The financial markets had been fully expecting today’s move.
Comments Off on Federal Reserve hikes with upbeat outlook
The Bank of Canada (BoC) announced it would keep the overnight interest rate at 1.25% at today’s meeting. The outcome was not surprising as North American Free Trade Agreement (NAFTA) negotiations remain unresolved and economic growth in the first quarter showed signs of slowing down.
Comments Off on BoC remains data dependent
The Bank of Canada (BoC) left the target overnight rate at 1.25% at today’s meeting, after hiking the rate 0.25% at the January 17 meeting.
The Bank of Canada (BoC) announced today it was raising the target overnight rate by 0.25% to 1.25%. The last time the BoC hiked its target rate was at the September 6 meeting. Market expectations for this rate hike began to increase several weeks ago, so it was almost fully priced into the market.
Comments Off on BoC hikes again, citing near-capacity growth
The U.S. Federal Open Market Committee (the Fed) raised the target Fed Funds Rate by 0.25% to a range of 1.25%-1.50% at today’s meeting. This is the third rate hike this year, although the first one since the Fed announced it was reducing the size of its balance sheet at the September meeting.
Comments Off on Fed maintains a slow and steady approach
After two successive rate hikes, the Bank of Canada (BoC) left the target overnight rate unchanged at 1.0% at today’s monetary policy meeting. The pause in rate hikes had been anticipated by most of the market.
Comments Off on Three is a crowd
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.
Comments Off on Fed balance sheet normalization at last
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.
Comments Off on Interest rate outlook: BoC moves firmly into hawkish camp
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.
Comments Off on Surprise hike from hawkish BoC
After hitting lows for the year in June, 10-year government bond yields rose to a two-year high of 1.89% in July,1 as the Bank of Canada (BoC) unsurprisingly increased its benchmark rate from 0.50% to 0.75%.2 The accompanying statement was upbeat as well, brushing off softer inflation numbers as temporary. The BoC’s optimism will probably keep the possibility of another rate hike alive at each of its upcoming meetings. We expect interest rates in Canada to rise from current levels, but we are looking for signs that rates may have topped out in the short term.
Following recent upbeat comments, the Bank of Canada (BoC) announced today that it would hike the overnight target rate to 0.75% from 0.50%. This is the first rate hike since 2010, as the BoC has become confident that the current “above potential growth” will continue, leading it to take back one of two emergency rate cuts enacted in 2015.
Comments Off on Up, up and away: BoC hikes rate
In June, Canadian 10-year government bond yields bounced off their lowest levels of the year, to 1.63%, as first quarter growth came in above expectations and central banks express confidence that monetary policy has accomplished it’s goal.1 The Bank of Canada (BoC), in particular, is less worried about uncertain U.S. trade policy and another substantial drop in oil prices, and becoming worried that excess capacity is beginning to dwindle. Their optimism may prove to be premature as inflation remains very low, so we are watching its stance closely. We expect interest rates in Canada to rise from current levels.
Comments Off on Interest-rate outlook: Expect rising rates in Canada
The U.S. Federal Open Market Committee (Fed) hiked its key interest rate by 0.25% today, to a target range of 1% – 1.25%. While the hike was fully expected by the market, recent inflation prints, such today’s May CPI falling by -0.1%, had left an expectation this would be a dovish hike. As it turns out, the Fed announcement was hawkish as it formally announced the details of their balance sheet normalization.
Comments Off on Full steam ahead: Fed hawkish, hikes rates
During the recent rate rally, the Canadian 10-year government bond yield held at 1.45% and has bounced slightly from there, but still remains at the lower end of its recent range.1 Economic data has tapered off from the strong rebound seen in the first quarter and the Bank of Canada continues to keep monetary policy on hold. The U.S.’s recently imposed tariffs on Canadian softwood exports raised concerns about broader trade implications. In addition, a Canadian subprime mortgage lender has experienced a liquidity drain, drawing attention to an area of the mortgage market that is not typically in the news. We would expect Canadian yields to remain supported in any sell-off.
Comments Off on Interest-rate outlook: Excess pessimism in U.K.
The yield on the 10-year Canadian government bond broke through its recent range of 1.60%-1.87%, reaching a low of 1.43% on April 18.1 Geopolitical risks, as well as concerns about elections in France were the big driver as the economic data in Canada has been fairly positive.
