BoC set to look past latest slump in first rate decision of 2021
Shelly Hagan, Bloomberg News VIDEO SIGN OUT
The Bank of Canada is expected to look past a downturn in early 2021 and refrain from adding new stimulus amid expectations for a quick rebound later this year.
Economists unanimously predict policy makers led by Governor Tiff Macklem will leave their key interest rate and asset purchase program unchanged at a 10 a.m. decision Wednesday in Ottawa. Macklem will then hold a press conference at 11 a.m.
Thereâs been some speculation the central bank may lower its 0.25 per cent policy rate further to counter a downturn in the first quarter of this year, coupled with other headwinds such as rising market interest rates and a strengthening Canadian dollar.
Prime Minister Narendra Modis government has been parsimonious in pump-priming the economy, for fear of a rating downgrade to junk, and may find that kicking the can down the road is no longer an option.
Budget 2021 Must Fix Broken Labour Market To Boost Demand: Analysts Finance Minister Nirmala Sitharaman has described her upcoming budget as unlike anything seen in the last 100 years.
Updated: February 01, 2021 9:31 am IST
Finance Minister Nirmala Sitharaman has described her upcoming budget as unlike anything seen in the last 100 years.
When she presents it on February 1, Ms Sitharaman will not only aim to repair battered government finances and ensure demand recovers in an economy facing its worst contraction since 1952, she must also revive declining revenue and restore millions of jobs lost during the pandemic. That will be crucial to boosting consumer sentiment in a country where local demand contributes nearly 60% of gross domestic product.
BoC set to look past latest slump in first rate decision of 2021
Shelly Hagan, Bloomberg News VIDEO SIGN OUT
The Bank of Canada is expected to look past a downturn in early 2021 and refrain from adding new stimulus amid expectations for a quick rebound later this year.
Economists unanimously predict policy makers led by Governor Tiff Macklem will leave their key interest rate and asset purchase program unchanged at a 10 a.m. decision Wednesday in Ottawa. Macklem will then hold a press conference at 11 a.m.
Thereâs been some speculation the central bank may lower its 0.25 per cent policy rate further to counter a downturn in the first quarter of this year, coupled with other headwinds such as rising market interest rates and a strengthening Canadian dollar.
Prinesha Naidoo, Bloomberg News Pedestrians use the footbridge across the Umaru Musa Yaradua Express way in Abuja, Nigeria, on Friday, Jan. 10, 2020. Revenue in Nigeria has fallen short of the government target by at least 45% every year since 2015, and shortfalls have been funded through increased borrowing. Photographer: KC Nwakalor/Bloomberg , Bloomberg
(Bloomberg) African central bankers meeting in the next two weeks amid a resurgent coronavirus may find theyâve used up most of their interest-rate ammunition to lift their economies out of recessions that still affect much of the continent.
Monetary policy committees have limited scope to provide stimulus after aggressive easing when lockdowns first shuttered output in 2020, with inflation quickening in Nigeria and Angola and restrictions that would dull the impact of rate cuts continuing in South Africa and Kenya.