Deputy governor emphasizes the need for progress

  • Bank of Canada wants more evidence of sustainable downward trend in inflation
  • Total inflation decelerated to 3.1% in October
  • Short-term annualized core inflation fell to around 3%
  • Deputy governor Toni Gravelle emphasizes the need for further progress
  • Bank of Canada ready to raise rates again if necessary
  • Economists expect interest-rate cuts later in 2024

Higher interest rates have helped cool economic activity and relieve upward price pressures, but the Bank of Canada is looking for more evidence of a sustainable downward trend in inflation. Deputy governor Toni Gravelle stated that while there was improvement in inflation measures in October, further progress is needed. Total inflation decreased to 3.1% and short-term annualized core inflation fell to around 3%. Gravelle highlighted the importance of services inflation, which has eased from 4% to 2.3% in October. The Bank of Canada remains prepared to raise rates again if necessary, as they are concerned about upside risks in the inflation outlook. Economists expect interest-rate cuts later in 2024 as output is expected to weaken further.

Public Companies: Bank of Canada (N/A)
Private Companies:
Key People: Toni Gravelle (Deputy governor)

Factuality Level: 8
Justification: The article provides factual information about the remarks made by Deputy Governor Toni Gravelle and the current state of Canada’s economy. It includes data on inflation rates and the central bank’s interest rate policy. There is no obvious bias or misleading information in the article.

Noise Level: 7
Justification: The article provides some relevant information about the Bank of Canada’s stance on interest rates and inflation. However, it lacks depth and analysis, and there is a lack of evidence or data to support the claims made. The article also includes some repetitive information and does not provide actionable insights or solutions.

Financial Relevance: Yes
Financial Markets Impacted: The article pertains to the Bank of Canada’s interest rate decisions, which can have an impact on financial markets and companies.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the Bank of Canada’s stance on interest rates and inflation, which are important factors for financial markets and companies.

Reported publicly: www.marketwatch.com