Bank of Canada cuts economic outlook


mentalfloss
#1
Dat booming oil economy!

Bank of Canada cuts economic outlook

The Bank of Canada continued to hold the line on interest rates despite the recent acceleration in inflation, but adjusted its inflation outlook Wednesday to acknowledge the faster-than-expected rise in Canadian consumer prices.

The central bank also said it expects Canada’s economy to return to full capacity a bit later than previously projected.


The Canadian dollar dipped immediately after Governor Stephen Poloz and his colleagues released their statement.

In its regularly scheduled interest-rate policy statement, the central bank, as expected, left its key policy interest rate unchanged at 1 per cent, where it has held steady for nearly four years.

But in its quarterly Monetary Policy Report, released at the same time, the bank raised its consumer price index inflation projection to 2.1 per cent for the just-ended second quarter and 2 per cent for the third quarter, from an earlier forecast of 1.6 per cent and 1.8 per.

It also raised estimates for its so-called “core” inflation measure – which excludes some of the most volatile components of the CPI, and is considered a better gauge of underlying inflation pressures in the broad economy – to 1.6 per cent in the second quarter and 1.7 per cent in the third quarter, from 1.2 per cent and 1.4 per cent, respectively, in the April report.

Nevertheless, slightly slower-than-expected economic growth has prompted the central bank to move back its expectation for when that core measure will reach 2 per cent – the inflation target the bank relies on as its guide for setting interest rates. It now projects the core measure will stabilize at 2 per cent third quarter of 2016, rather than its previous call of the 2016 first quarter.

More to come

Bank of Canada cuts economic outlook - The Globe and Mail
 
Walter
#2
I've often wondered how often these financial prognosticators are correct in their prognostications.
 
darkbeaver
Republican
#3
Quote: Originally Posted by WalterView Post

I've often wondered how often these financial prognosticators are correct in their prognostications.

Never, you can count on it. The Bank of Canada ceased to be Canadian in 1974. What we have installed in it's place is the initial assault of globalization. And the new numbers are every bit as fictitious as the orignals.


"The central bank also said it expects Canada’s economy to return to full capacity a bit later than previously projected."

They are of course using geological time in that quote. Decades at the very least, Germany was able to do it in four years, but you are aware of the cost of such a correction.
 
mentalfloss
#4
They just don't drink the koolaid like Walter does.
 
Count_Lothian
+1 / -1
#5  Top Rated Post
It shows you that the present C logo crowd, even with their majority, can only eek out growth.

They were given the free spending seal of good hope from World Bank and it's counterparts.

And all you get is this sluggish economy .

They are amateurs, have proven themselves to be and it is time for some good ole time Liberal Genius to show the world how it is done.

Ahh the heady economies of the Chretien Martin team.
 
Tecumsehsbones
+1
#6
Quote: Originally Posted by Count_LothianView Post

It shows you that the present C logo crowd, even with their majority, can only eek out growth.

eek out growth

*snicker*

I am terribly sorry, dear Count. But do be assured, I'm not laughing at you. I'm laughing near you.
 
Count_Lothian
#7
Quote: Originally Posted by TecumsehsbonesView Post

eek out growth

*snicker*

I am terribly sorry, dear Count. But do be assured, I'm not laughing at you. I'm laughing near you.

You know I was shocked the other night watching one of my fav guys Anthony Bourdain piece on Detroit.
Anthony Bourdain Parts Unknown - CNN.com (external - login to view)

It's what it was that was most shocking to me.
This was the genius of America and everything that is anything today had it's inception there. Frozen peas were invented there , for one.
Who knew!!!
It was an incredible city , I felt tears during this show, and that is not me being dramatic.

What it is now does have some rewards. 40 square miles of abandoned buildings and houses.
Detroit has tons of vacant land. But forty square miles? | Michigan Radio (external - login to view)

But with life still going on.

Genius still plays a part in the city . It just goes to show you the human spirit and American's love for their country.

I would implore you to watch Detroit from the link.
 

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