Article content
The Bank of Canada sent out a warning to investors this week that inflation still matters.
In a surprise move, it accelerated the timetable for a possible interest-rate increase and began paring back its bond purchases on Wednesday. That made Canada the first major economy to signal its intent to reduce emergency levels of monetary stimulus.
We apologize, but this video has failed to load.
Try refreshing your browser. Inflation forces the Bank of Canada s hand ahead of the Fed and ECB Back to video
It’s a turn in policy by Governor Tiff Macklem that shows there’s a limit to how much he’s willing to test the upper boundaries of inflation, with new forecasts showing the central bank expects the biggest persistent overshoot of its 2 per cent target in at least two decades. The question is whether Canada’s situation is unique, or foreshadowing the start of a global exit from stimulus.
Apr 23 2021, 2:00 AM
April 22 2021, 6:47 PM
April 23 2021, 2:00 AM
(Bloomberg)
(Bloomberg)
European Central Bank President Christine Lagarde said the institution isnât discussing the phasing out of its emergency bond buying even as it sees signs that the economy is starting to shake off the coronavirus pandemic.
While noting that medium-term risks for growth are balanced, she pushed back against any suggestion the ECB is thinking about scaling back stimulus, describing the idea as âpremature.â
âIncoming economic data, surveys and high-frequency indicators suggest that economic activity may have contracted again in the first quarter of this year, but point to a resumption of growth in the second quarter,â Lagarde said Thursday after the institution kept its stimulus program in place. âAny phasing out was not discussed and it is just premature.â
World s biggest stock owner says banks displaced tech as winners
SEC to examine fund disclosure rules after Archegos blowup
Michael Sprung s Top Picks: April 21, 2021
Stocks rebound as dip buyers fuel reopening trade
Treasury-buying apree of US$17 billion has UAE eclipsing China
James Telfser s Top Picks: April 20, 2021
Morgan Stanley joins bank bond bonanza with three-part sale
John Zechner s Top Picks: April 19, 2021
Teslaâs fiery crash adds to drag on already wobbly EV stocks
An ether ETF isn t even launched and already there is a fee war
Tech leads stock drop from record; dollar falls
Wall Street canât stop smashing records while pandemic lingers
James Telfser s Top Picks: April 20, 2021
Morgan Stanley joins bank bond bonanza with three-part sale
John Zechner s Top Picks: April 19, 2021
Teslaâs fiery crash adds to drag on already wobbly EV stocks
An ether ETF isn t even launched and already there is a fee war
Tech leads stock drop from record; dollar falls
Wall Street canât stop smashing records while pandemic lingers
Greg Newman s Top Picks: April 16, 2021
Family offices are targeting 800% returns with SPAC economics
Ark Invest s Cathie Wood thinks Shopify could be next Amazon
Christine Poole s Top Picks: April 15, 2021
Cooler heads prevailed (mostly) during COVID market mayhem: Survey
Coinbase rallies as Wall Street optimism bucks Bitcoinâs dip
Robust Rebound Wonât Augur End to Stimulus: Central Bank Guide
This content was published on April 19, 2021 - 23:01
April 19, 2021 - 23:01
(Bloomberg)
The aggressive rebound in global economic growth still isnât enough for most of the worldâs central banks to pull back on their emergency stimulus.
In Bloombergâs quarterly review of monetary policy covering 90% of the world economy, the Federal Reserve, European Central Bank and Bank of Japan are among the 16 institutions set to hold interest rates this year.
The outlook suggests officials still want to guarantee the recovery from last yearâs coronavirus recession by maintaining ultra-low borrowing costs and asset-buying programs. That may require them to accept any accompanying bounce in inflation.