May 20, 2022

Wire Service Canada

Complete Canadian News World

Bank of Canada raises rates to 0.50%. The crisis in Ukraine is uncertain

(Teleforza) – The Bank of Canada Is Today 25 basis points increase 0.50% interest rates, The first increase after October 2018, and will continue to have reinvestments as part of its bond purchase plan and will maintain a stable balance sheet until it is allowed to reduce the size of its balance sheet. “Aggression without Russian instigation on Ukraine is a major new source of uncertainty – Press release issued at the end of the meeting: The price of oil and other raw materials has increased significantly. This will increase worldwide inflation and negative impacts on optimism and new supply disruptions could affect global growth. Financial markets are volatile. “

The Federal Reserve has been positive about the performance of the Canadian economy in terms of recovering from the problems caused by the Omicron variant. “Housing costs are proving resilient and are expected to be further strengthened by the removal of public health restrictions,” he says. “Real estate activity is high, which adds more pressure to home prices. First-quarter growth is now firmer than previously expected“.

On the contrary, the rise in prices is worrying. “CPI inflation is currently at 5.1% as expected in January and is above the bank’s target limit – he points out. Inflation has become more widespread and all major inflationary measures have increased. Poor harvest and rising transport costs have pushed up food prices. Ukraine’s invasion puts further upward pressure on both energy and food prices.

(Teleforza) 02-03-2022 17:18