Bank of Canada Hikes by 75 Basis Points, Signals More to Come

“For those asking ‘Are we there yet?,’ the Bank of Canada answered ‘Not yet,’” Avery Shenfeld, chief economist at Canadian Imperial Bank of Commerce, said in a report to investors. The bank is signaling “today’s outsized rate hike still leaves rates shy of where it believes they will need to be to quell inflation.”

Bank of Canada to Hike Into Restrictive Range: Decision Guide

And inflation, although showing signs of peaking, is still running at an uncomfortable 7.6%, nearly four times the central bank’s target. With core measures and service inflation still rising, there is a risk that sticky underlying price pressures could still become entrenched, keeping pressure on Macklem and his officials to further tighten policy.

Global Rate-Hike Battle Presses On Relentlessly: Eco Week Ahead

Central banks around the globe are set to continue an assault on high inflation this week, even as vulnerabilities in their economies become ever clearer.

Bank of England Set to Accelerate Its Inflation Fight: Eco Week

In Brazil, June industrial output data sets the stage for the central bank’s momentous August meeting. After a record 11 straight rate hikes, there’s little doubt among analysts that the bank will raise the benchmark Selic to at least 13.75% on Aug. 3, but no real consensus about what comes next. Even if the institution … Read more