Bank of Canada holds rates but says further hikes possible
The Bank of Canada has decided to keep its key overnight interest rate at 5% due to weaker economic growth, but stated that it may raise borrowing costs if inflationary pressures persist.
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Despite a slight increase in Canada's inflation rate last month, the Bank of Canada remains determined to bring it down to 2%, with the possibility of another rate hike being considered in September. However, some economists believe that the positive overall figures may allow the Bank to pause on rate increases without a significant negative impact.
Turkey's central bank has raised its key interest rate by 7.5 percentage points to 25% in an effort to curb inflation and stabilize the economy, leading to a jump in the Turkish lira.
The Bank of Canada is expected to keep its key interest rate steady at 5.00% and maintain that level until at least the end of March 2024, despite rising inflation and a revival in the housing market, according to economists in a Reuters poll.
The Bank of Canada is set to issue an interest rate update, with experts predicting a potential rate hike that could impact mortgage payments and home values.
The Reserve Bank of Australia is expected to keep its key interest rate unchanged at 4.10% as inflation slows, but economists anticipate a final hike in the next quarter.
The Bank of Israel is expected to maintain its interest rate at 4.75% due to decreasing inflation and indications of modest economic growth, despite concerns about the slowdown in the hi-tech industry and reduced demand for workers; meanwhile, interest rates in Israel are influenced by expectations of lower rates in the United States and the recent drop in the shekel's value.
The Federal Reserve is considering whether to raise the key interest rate even higher to combat inflation, but some members, like Raphael Bostic, believe it's unnecessary and recommend keeping the rate at its current level for an extended period. Bostic also emphasizes the strength and resilience of businesses and families, and the need to maintain a restrictive stance on interest rates to achieve the 2% inflation target.
Bank of Canada Governor Tiff Macklem suggests that interest rates may not be high enough to bring inflation back down to target, emphasizing the need for further restrictive monetary policy to restore price stability.
The Federal Reserve is expected to keep its benchmark overnight interest rate unchanged and delay any rate cuts until at least 2024, according to a Reuters poll of economists, despite some suggesting that another rate hike might be needed to address inflation.
The European Central Bank is facing a dilemma on whether to raise its key interest rate to combat inflation or hold off due to economic deterioration, with investors split on the likelihood of a rate hike.
The European Central Bank has raised key interest rates by 0.25 percentage points to help bring down inflation, although the economy is expected to remain weak for a while before slowly recovering in the coming years.
The State Bank of Pakistan has announced that it will maintain its key policy rate at 22%, citing a continuing declining trend in inflation, improved agricultural outlook, and recent administrative and regulatory measures to address supply constraints and illegal activity. The bank hopes that inflation will subsequently decline in October.
The Russian central bank has raised its key interest rate to 13% in response to inflationary pressures and a weak rouble, and warns that rates will remain high for a considerable period of time, with further rate increases possible in the future.
The Bank of England is expected to raise interest rates to 5.5%, potentially marking the end of its tightening cycle, as concerns about a cooling economy grow among policymakers.
Canada's annual inflation rate in August was 4.0 percent, with major cities experiencing varied rates, while South African bonds continue to decline, and the stock market awaits the Federal Reserve's decision on interest rates.
The Federal Reserve is expected to maintain interest rates for now but keep the option open for future rate hikes to address inflation concerns.
The Federal Reserve's decision to raise interest rates will continue to burden borrowers with higher bills on credit cards, student loans, car loans, and mortgages, while savers are rewarded with higher rates on savings accounts and certificates of deposit.
The Federal Reserve has decided to keep interest rates steady, giving borrowers a break after 11 rate hikes and aiming to tame inflation while avoiding a recession.
The Swiss National Bank keeps interest rates unchanged at 1.75% and hints that further tightening may be necessary to ensure price stability, while also warning of a possible global economic slowdown and addressing the risk of energy shortage in Europe.
The Bank of England has paused its interest rate hike campaign and kept the borrowing cost at 5.25% due to unexpectedly falling inflation in August, providing relief to UK households and potentially leading to cuts in mortgage rates. The decision was a close vote and the central bank hinted that borrowing costs would need to remain high for a sustained period to ensure a fall in inflation. Despite this, many analysts expect no further rate hikes.
Central banks, including the US Federal Reserve, European Central Bank, and Bank of England, have pledged to maintain higher interest rates for an extended period to combat inflation and achieve global economic stability, despite concerns about the strength of the Chinese economy and geopolitical tensions.