forma condos.Is it far from for the Fed to slow down and raise interest rates? On Wednesday, the Bank of Canada raised interest rates by 50 basis points, below market expectations of 75 basis points.Please Visit: forma condos to Get Your VVIP Registration Today!
The Bank of Canada raised interest rates six times in 2022, 25 basis points in March, 50 basis points in April and June respectively, raised to 100 basis points in July, slowed to 75 basis points in September, and then slowed to 50 basis points in October. It is obvious that a parabolic rate increase.
With regard to the 50 basis point increase in Canadian interest rates in October, the Bank of Canada said in a statement after the meeting that with the global economic slowdown and the recovery of supply chain disruptions, global inflation will decline, Canadian real estate activity will shrink sharply, household and business spending is slowing, the slowdown in international demand is beginning to affect exports, high interest rates are affecting the economy is spreading, the Canadian economy is expected to stagnate at the end of the year and early next year, and the Canadian economy slows to 1% in 2023. CPI inflation figures will fall to 3 per cent in 2023 and return to the central bank’s 2 per cent target in 2024.
The Bank of Canada made its position very clear after the meeting, judging that inflation will fall on the basis of rebalancing to control inflation and prevent the impact of high interest rates on the economy is an important reason for the interest rate hike at 50 basis points.
Isn’t it the current problems in the United States that real estate activity is shrinking sharply, household and business consumption and investment confidence are declining, and high interest rates are affecting every aspect of the economy? Canada’s slowdown in raising interest rates was earlier than expected by the market, and the slowdown in Fed interest rate hikes made a key hint in the student group analysis on Friday that the pressure on the dollar index will gradually increase within the year. On Friday, the dollar index was still at 113, and today it fell below 110. Trading Fed interest rate hikes and even the Fed’s suspension of interest rate hikes are expected to affect global asset prices in the remaining two months of this year.
In 2022, global capital markets have gone through trading re-inflation, trading Fed interest rate hikes, trading recession expectations, trading Fed interest rate increases slow, what other trading path will the market have in the remaining two months of the year? The recession is necessary to continue trading, and it is also an option for the Federal Reserve to stop raising interest rates and even switch to trading for the Fed to stop raising interest rates. The former is pressure on asset prices, while the latter is long covering for asset prices, both of which are friendly to the bond market and the precious metals market, and are more deterministic opportunity sectors in the remaining two months of this year and the first half of next year.
