2023-11-10 09:41:00
© Archyde.com. Deputy Governor of the Bank of Canada: Interest rates may not return to previous low levels!
Arabictrader.com – The statements of the First Deputy Governor of the Bank of Canada, Caroline Rogers, issued yesterday evening, Thursday, addressed these points:
It warned that prices may not return to the low levels that consumers were accustomed to before the Corona pandemic. The world is already adjusting to higher interest rates. Rising levels of government debt and geopolitical risks such as the war between Israel and Gaza may lead to higher interest rates. Adjusting to higher interest rates will be a big change for everyone from governments to businesses to households. It warned that there will be further adjustment in the Bank of Canada’s monetary policy in the future, as the economy begins to be affected by previous increases in interest rates. Businesses are also feeling pressure from rising interest rates as demand for their goods and services slows, coupled with rising debt servicing costs. The effects of higher interest are still making their way through the economy. Therefore, the Bank of Canada needs to closely monitor credit stress indicators and survey data, to gauge how businesses and households are adapting. Data shows that rising interest rates are forcing Canadians to limit their spending, even as the pace of credit among households slows. Adapting early reduces the risk of having to take more abrupt and potentially disruptive steps for the Canadian economy. Structural changes in the global economy such as a shift from saving to spending can lead to higher interest rates.
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