LOOKS LIKE INTEREST RATES ARE GOING UP!
Wednesday Mar 30th, 2022
Canada’s 10-year yield rose to the highest since 2018 as a top Bank of Canada official said household finances are in good shape and that monetary policymakers are prepared to “act forcefully” to quell inflation.
Deputy Governor Sharon Kozicki reiterated the central bank’s “unwavering commitment” to wrestle inflation back to the 2% target and said more aggressive action -- including shrinking holdings of government bonds, known as quantitative tightening -- will be discussed. She acknowledged that while rising borrowing costs impact Canadians differently, higher price pressures are “especially painful” for low income individuals.
“I expect the pace and magnitude of interest rate increases and the start of QT to be active parts of our deliberations at our next decision in April,” Kozicki said Friday. She also warned that Russia’s war in Ukraine is driving inflation higher than expected in the bank’s most recent quarterly forecasts. # SANDI HALPERN # SOLD # LEASED # INFLATION # INTEREST RATE