🇨🇦 Canada Rate Decision Today (Updated)
BoC hiked the rate by another 50 bps, which brings the cumulative rate hike this year to 350 bps.
The increase is lower than the market-anticipated 75 bps, as the central bank is trying to strike a balance between the inflation fight and economic activity.
🟦 Sep inflation 6.9% vs. the peak of 8.1% in June.
The strong employment market offers a cushion for a higher rate.
🟩 Sep unemployment rate 5.2% vs. 5.7% in Feb 2020
🟩 July saw # of job vacancies at 964K
The housing market is crumbling under the high rate.
🟥 Sep avg sales price down 22% from Feb high.
🟥 Subprime variable mortgage holders face the biggest pressure.
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