The Bank of Canada cannot afford to be complacent if it wants to keep inflation in check over its 18-24 month time horizon ... Look for the overnight rate to peak at 4 percent.
It'll be a pretty big increase. It means a lot for consumers and their pocketbooks, obviously - it's going to squeeze their spending power.
This is really a tale of two job markets.
As a result, net exports contributed positively to the accounting of GDP growth in November.
They said nothing's changed in their view of the economy so markets focused on the word 'modest' to mean they'll be less aggressive.
That's not suggesting to me that he sees himself with having a whole battery of rate hikes going forward. I would not be surprised at all to see them go one more time and then pause.
This morning's merchandise trade report certainly came as a shocker, but this is one case where the headline looks much worse than the details of the data.
This may be partly a commodity price story.
You should see Canada's 10-year bonds rally in the second half of this year. I don't see a big appetite on the part of the Bank of Canada to hike interest rates as the economy slows. There is no compelling reason to go beyond 4 percent.
The weakness in the Canadian dollar is essentially a follow-through from yesterday's Fed rate decision that has the market anticipating at least one more hike.
