Bank of Canada Hikes Rates 25 bps to Highest Level Since 2008, Signals Holding Pattern

Bank of Canada raised the target for its overnight rate by 25bps to 4.50% in January 2022, as expected. The move follows the aggressive hikes at the last four meetings. It was the eighth consecutive rate hike pushing borrowing costs to the highest level since 2008. Notably the BoC Governing Council said “If economic developments evolve broadly in line with the MPR outlook, Governing Council expects to hold the policy rate at its current level while it assesses the impact of the cumulative … Continue reading “Bank of Canada Hikes Rates 25 bps to Highest Level Since 2008, Signals Holding Pattern”

Canadian Oil and Gas Producers Rise Over 50% Buffeting Toronto Losses to 8.7% in 2022

Canada’s benchmark stock market the S&P/TSX Composite fell 8.7% in 2022 in the worst year since 2018, closing 0.5% lower at 19,385 on Friday. Canadian bond yields rose sharply as the BoC’s tighter monetary policy matched the US Fed and US Treasuries reaction. In 2022 Toronto’s banking sector fell over 12% on average, pressured by lower credit demand. The tech sector lost over 30%. Canadian oil and gas producers soared over 50% on average, as natural gas crude oil prices … Continue reading “Canadian Oil and Gas Producers Rise Over 50% Buffeting Toronto Losses to 8.7% in 2022”

Bank of Canada Hikes Rates 50 bps to Highest Level Since 2008

Bank of Canada raised the target for its overnight rate by 50bps to 4.25% in December 2022, the market had been pricing a 62% chance of a 25-bps hike while economists narrowly favored the 50-bps hike. The move follows the aggressive hikes at the last three meetings. It was the seventh consecutive rate hike pushing borrowing costs to the highest level since 2008. Notably the BoC Governing Council dropped “expects that the policy interest rate will need to rise further” to … Continue reading “Bank of Canada Hikes Rates 50 bps to Highest Level Since 2008”

Bank of Canada Raises Rates 50 Basis Point to Highest Level Since 2008

Bank of Canada raised the target for its overnight rate by 50bps to 3.75% in October 2022, the market had been leaning for a 75bps hike. The move follows the aggressive 75bps and 100bps hikes at the last two meetings. It was the sixth consecutive rate hike pushing borrowing costs to the highest level since 2008. The BoC Governing Council “expects that the policy interest rate will need to rise further” to achieve the 2% inflation target. There is a press … Continue reading “Bank of Canada Raises Rates 50 Basis Point to Highest Level Since 2008”

U.S. Trade Deficit Narrowed to -$67.4 billion in August with Softening Global Activity

The trade deficit narrowed to $67.4 billion in August (consensus -$67.9 billion) from an upwardly revised -$70.5 billion (from -$70.6 billion) in July. August exports were $258.9 billion, $0.7 billion less than July exports. August imports were $326.3 billion, $3.7 billion less than July imports. The goods deficit with China widened to $33.5 billion from $32.9 billion in July. Highlights International trade deficit for August 2022 -$67.4 billion vs -67.9 estimate from an upwardly revised -$70.5 billion (from -$70.6 billion) … Continue reading “U.S. Trade Deficit Narrowed to -$67.4 billion in August with Softening Global Activity”

Bank of Canada Raises Rates 75 Basis Point to Highest Level Since 2008

Bank of Canada raised the target for its overnight rate by 75bps to 3.25% in September 2022, in line with market forecasts. The move follows the aggressive 100bps at the last meeting. It was the fifth consecutive rate hike pushing borrowing costs to the highest level since 2008. The BoC said interest rates will need to rise further and the Governing Council is prepared to act more forcefully if needed to meet its commitment to achieve the 2% inflation target. The … Continue reading “Bank of Canada Raises Rates 75 Basis Point to Highest Level Since 2008”

U.S. Trade Deficit Narrowed to -$70.7 billion in July as Exports Hit all Time High

The trade deficit in the US narrowed by $10.2 billion to $70.7 billion in July 2022, a 9-month low as world trade declines. Forecasts were for $70.3 billion. Total exports were up 0.2% to a new all-time high of $259.3 billion as a rise in exports of services offset a decline in goods shipments. Imports fell 2.9% to $329.9 billion. The deficit with China fell $3.9 billion to $33.0 billion in July with exports rising to $12.8 billion and imports … Continue reading “U.S. Trade Deficit Narrowed to -$70.7 billion in July as Exports Hit all Time High”

U.S. Trade Deficit -$79.6 Billion, China Gap Rises to -$36.95 Billion

The US trade deficit in June was $79.6 billion (consensus $81.7 billion) from a revised deficit of $84.9 billion (from $85.5 billion) in May. The China and US trade deficit rose to -$36.95 billion vs. May deficit $-31.54 billion. Exports were up 3.5% to a record high of $260.8 billion, led by natural gas. Imports fell again to $340.41 billion vs. May $341.43 billion These monthly swings are also influenced by the supply crisis affecting orders and deliveries. Highlights International trade … Continue reading “U.S. Trade Deficit -$79.6 Billion, China Gap Rises to -$36.95 Billion”

Bank of Canada Raises Rates 100 Basis Point in Largest Increase Since 1998

Bank of Canada raised overnights rate by a higher-than-expected full percentage point from 1.5% to 2.5%, the market was anticipating 75 basis points. It was the fourth consecutive rate hike pushing borrowing costs to the highest level since the pandemic started. The BoC said interest rates will need to rise further and the Governing Council is prepared to act more forcefully if needed to meet its commitment to achieve the 2% inflation target. The risk of elevated inflation becoming entrenched has … Continue reading “Bank of Canada Raises Rates 100 Basis Point in Largest Increase Since 1998”

U.S. Trade Deficit Pulls Back from Record as Exports Rise Led by Natural Gas, Petroleum Products and Soybeans

The US trade deficit in April was $87.20 Billion down from prior month’s record $-107.7 billion. The China and US trade deficit fell to -$30.57 billion vs. $-34.00 billion last month. Exports were up 3.5% to a record high of $252.6 billion, led by natural gas. Imports collapsed to -3.4% from March rise +9.6%. These monthly swings are also influenced by the supply crisis affecting orders and deliveries. Highlights International trade balance $-87.2 billion vs. $-89.5 billion estimate. The prior … Continue reading “U.S. Trade Deficit Pulls Back from Record as Exports Rise Led by Natural Gas, Petroleum Products and Soybeans”