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Bank of Canada Jan. 26th Meeting – The Bank of Canada holds for now, but sets the stage for a March 2nd lift off.
Bank of Canada – January 2022
In what was likely a close call, the Bank of Canada left its overnight target rate unchanged at 0.25% where it’s been since 2020. Based on a number of key quotes (included below) within the BofC press release, we believe the stage is set for the increases to begin at the next BofC meeting on March 2nd.
– “The economy entered 2022 with considerable momentum, and a broad set of measures are now indicating that economic slack is absorbed. With strong employment growth, the labour market has tightened significantly. Job vacancies are elevated, hiring intentions are strong, and wage gains are picking up. Elevated housing market activity continues to put upward pressure on house prices.”
– “With overall economic slack now absorbed, the Bank has removed its exceptional forward guidance on its policy interest rate.”
– “Looking ahead, the Governing Council expects interest rates will need to increase…”
To access the full Bank of Canada press release, please click the “Read More” button below. We have also included our commentary on how today’s announcement will impact mortgage rates in our “Mortgage Rates & Trends” section later in this report.
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