Xinhua
08 Dec 2022, 02:30 GMT+10
OTTAWA, Dec. 7 (Xinhua) -- The Bank of Canada on Wednesday increased its benchmark interest rate by 50 basis points to 4.25 percent.
The bank's governing council will be considering whether the policy interest rate needs to rise further to bring supply and demand back into balance and return inflation to target, the central bank said in a press release.
"We are resolute in our commitment to achieving the 2 percent inflation target and restoring price stability for Canadians," the bank said.
Canada's CPI inflation remained at 6.9 percent in October, with many of the goods and services Canadians regularly buy showing large price increases, the bank said, adding that measures of core inflation remain around 5 percent and that three-month rates of change in core inflation have come down, an early indicator that price pressures may be losing momentum.
However, inflation is still too high and short-term inflation expectations remain elevated. The longer that consumers and businesses expect inflation to be above the target, the greater the risk that elevated inflation becomes entrenched, the bank said.
According to the bank, Canada's GDP growth in the third quarter was stronger than expected, and the economy continued to operate in excess demand. Labor market remains tight, with unemployment near historic lows.
While commodity exports have been strong, there is growing evidence that tighter monetary policy is restraining domestic demand: consumption moderated in the third quarter, and housing market activity continues to decline, the bank said.
The bank projected that the country's economic growth will essentially stall through the end of this year and the first half of next year.
Quantitative tightening continues and is complementing increases in the policy interest rate, the Bank of Canada said.
Get a daily dose of Breaking Property News news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Breaking Property News.
More InformationSEOUL, South Korea: Korea Customs Service data released this week showed that South Korean exports for the first 20 days ...
DUBLIN, Ireland: Ireland reported a higher budget surplus than any other country among the 27-member European Union for the third ...
WASHINGTON D.C.: Based on a range of measurements, US manufacturing could have entered a recession in the fourth quarter of ...
FRANKFURT, Germany: German media has reported that American power chipmaker Wolfspeed Inc is planning to build a factory in Germany, ...
TOKYO, Japan: More than half of major Japanese companies are planning to raise wages this year, after Prime Minister Fumio ...
TAIPEI, Taiwan: Highlighting its worst performance in 13 years, Taiwan's trade-dependent economy contracted in the fourth quarter, affected by declining ...
WASHINGTON D.C.: In December 2022, US existing home sales declined to a 12-year low, but lower mortgage rates raised cautious ...
© Provided by Xinhua Inflation is projected to come down significantly this year. Lower energy prices, improvements in global supply ...
Average home prices could fall by up to 10% this year, Lloyds Bank predictsBritish house prices, which have been on ...
ABU DHABI, 28th December 2022 (WAM) - The Arab Monetary Fund (AMF) said that the Arab construction sector has recovered ...
DUBAI, 4th December, 2022 (WAM) -- The 43rd edition of the Big 5, the largest and most influential construction event ...
DUBAI, 29th November, 2022 (WAM) - As Dubai gears up to host the 43rd edition of the Big 5 - ...