Bank of Canada to focus on risks before rate decision

The Governor of the Bank of Canada, Tiff Macklem, revealed that the Bank intends to shift its focus towards potential risks that may arise when making decisions regarding interest rates later this ￰0￱ move comes as the Bank of Canada (BoC) also adopts the aim of looking ahead more ￰1￱ announcement follows Macklem’s statement that they need to be realistic about their predictions and carefully observe the risks during a conference call from ￰2￱ BoC aims to embrace a cautious approach before its upcoming decision on rates On October 29, the central bank will announce its final decision on interest rates and provide new economic forecasts for the ￰3￱ day will also signal the return of the bank’s forecasts on the economy and inflation, which it ceased providing earlier this year due to increased uncertainties stemming from ongoing threats posed by US President Donald Trump’s tariffs.

“We will utilize a new base case projection to look ahead while considering the current high degree of uncertainty… I hope we can embrace a more forward-looking approach,” Macklem ￰4￱ governor also pointed out that although uncertainty still exists, it is lower than what was noted in February and ￰5￱ the interest rate, money markets have suggested a 64% likelihood of a 25-basis-point rate cut this ￰6￱ is anticipated to reduce the benchmark policy rate to 2.25%. In September, the BoC had lowered rates by 25 basis points, settling them down to 2.5%. To illustrate the bank’s commitment to the situation, reliable sources have highlighted that it will have access to a survey of businesses and consumers before the finalization of interest rates this ￰7￱ survey will inform the BoC of inflation outlooks, investment patterns, and spending habits.

Notably, the survey review is scheduled for Monday, October 20. Meanwhile, apart from the survey, the bank will also have access to the latest inflation reports on Tuesday, October ￰8￱ report will highlight consumers’ September price ￰9￱ economist recently stated that Canada’s economic growth in the third quarter could fall short of the Bank of Canada’s forecast, given the latest data showing a contraction in manufacturing sales . “We continue to expect a weak third quarter, with growth on track to significantly undershoot the Bank of Canada’s one per cent forecast,” Alexandra Brown, North America economist at Capital Economics Ltd., said in a ￰10￱ sales decreased by one per cent in August, according to Statistics Canada data released on Wednesday, although this result beat estimates for a 1.5 per cent ￰11￱ value declined by 1.5 percent for the ￰12￱ sales declined in 12 of the 21 subsectors, with transportation experiencing the largest decrease, 5.7 percent from July, while the food sector contracted by 1.9 ￰13￱ Economics forecasted third-quarter GDP to come in at 0.8 percent on an annualized basis in late ￰14￱ expresses his delight with the IMF’s new monitoring approach Canada’s economic growth drastically declined by 1.6% annually in the second ￰15￱ several considerations, the Bank of Canada has predicted that the country’s economic growth will soon rebound.

Still, Macklem believes that growth will remain sluggish and below its ￰16￱ to him, this will not eliminate the output ￰17￱ debates about the country’s economic growth heated up, the governor actively attended meetings with financial leaders from the ￰18￱ also joined discussions at the International Monetary Fund (IMF) in ￰19￱ the discussions at the IMF, he noted that IMF leaders emphasized that global imbalances were once again widening. Afterwards, they explained that this could heighten risks, escalate trade tensions, and jeopardize financial ￰20￱ the IMF’s observation, Macklem expressed pleasure that the agency is now strengthening its monitoring of these ￰21￱ up to Bybit and start trading with $30,050 in welcome gifts