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Markets and Finance
 
Canada's bond market signals inflation shortfall
21-Jul-2017

Canada's bond market is signalling the Bank of Canada will not reach its 2 percent inflation target anytime soon, suggesting the central bank is unlikely to pull off more than one more rate hike even as money markets see further tightening into 2018.Economists expect the Bank of Canada to raise its policy rate CADISC again in October after having hiked it last week to 0.75 percent, the first increase since 2010. A second increase this year, likely to 1 percent, would erase a pair of rate cuts in 2015 that cushioned the economy from collapsing oil prices.But undershooting inflation due to structural impediments and a stronger Canadian dollar could derail additional hikes.

News Source:- http://in.reuters.com/article/canada-bonds-inflation-analysis-idINKBN1A52ZI