Investors Brace for Bank of Canada Taper: Decision-Day Guide
Bloomberg 3/10/2021 Shelly Hagan
(Bloomberg) The Bank of Canada could soon start pulling back stimulus from the nation’s surprisingly robust economy, with the first clues on its next moves coming as early as today.
Popular Searches
Economists unanimously predict policy makers led by Governor Tiff Macklem will leave their key interest rate unchanged at 0.25% at a 10 a.m. decision Wednesday in Ottawa. There’s speculation, however, they could signal plans to pare back the central bank’s asset purchases at the next meeting in April.
While Macklem has long indicated such a move would be required once the recovery takes hold, the economy is running at a much faster clip than the Bank of Canada has been projecting potentially forcing it into action.
Bank of Canada stands pat on stimulus, keeps up bond-buying bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
Japan’s Economy Took Double-Digit Growth Momentum Into Emergency
Bloomberg 3/9/2021 Yoshiaki Nohara
(Bloomberg) Japan confirmed its economy grew by double-digits at the end of last year, according to revised data that continued to show strength even as this quarter’s virus emergency sets back the recovery for the time being.
Gross domestic product grew an annualized 11.7% from the prior quarter in the three months through December, the Cabinet Office reported Tuesday.
The figures were a touch weaker than a preliminary 12.7% largely due to a bigger drawing down of inventories that points to stronger demand in the quarter, even though it weighs on the overall GDP figure. Economists had forecast a revised growth rate of 12.6%.
Read more about Oil nearing $70 worries consumer nations, may hamper economic recovery on Business Standard. Consuming nations will bear the cost of pricier energy, potentially fanning inflation and hurting their recoveries
While prices have since pulled back, the impact on inflation and the overall global recovery depends on how sustained the underlying rally proves to be.