M2m condos location . Does the property market need to cool down when the weather changes? The Bank of Canada has just kept interest rates unchanged by 0.25% as scheduled, and the economic recovery is expected to strengthen in the second half of the year, but stressed that the epidemic poses a risk, and the factors driving up inflation are expected to be temporary.Please Visit: M2m condos location to Get Your VVIP Registration Today!
The weekly net purchase target for Canadian government bonds is maintained at C $2 billion and its special forward-looking guidance on the interest rate path remains committed to keeping policy rates at an effective floor until the 2 per cent inflation target is met.
In addition, the central bank said that economic weakness will be absorbed in the second half of 2022, and the factors driving inflation are also temporary, but the current financial conditions are still highly loose, supply chain disruptions will curb activities in some industries, and the increase in COVID-19 cases in many regions will pose a risk to the strength of the global recovery.
Even so, the central bank insists that while a fourth wave of infections and persistent supply bottlenecks could drag on the recovery, the economy is expected to strengthen in the second half of the year.
With the economy shrinking by 1.1% in the second quarter, well below the expected growth of 2.0%, the central bank is in a tricky situation, at least in the near term. However, a total of 16 of the 19 economists surveyed predicted that the central bank would raise interest rates by 0.5% next year, in the fourth quarter of 2022.
Since late March 2020, the Bank of Canada has kept its benchmark interest rate at 0.25% and promised to keep interest rates low until 2023.
Nick Bennenbroek, international economist at Wells Fargo, said: “inflation has increased significantly and although there may be a brief period of weak growth, the overall economic recovery is still on track. Against this backdrop, the Bank of Canada will shift to less loose monetary policy. In fact, if growth or inflation rises unexpectedly, the first rate hike may come sooner than we currently expect. ”
At present, Canada is in a period of gradual recovery, gasoline prices are rising, prices are rising. The central bank reminds the public that inflation may be temporary, but it should still be noted. After all, the recent price rise is not due to the overheating of the economy, but to the impact of the current economic restart.