ECB Consumer Expectations Survey results – October 2022

The Bank of Canada today increased its target for the overnight rate to 4¼%, with the Bank Rate at 4½% and the deposit rate at 4¼%. The Bank is also continuing its policy of quantitative tightening. Inflation around the world remains high and broadly based. Global economic growth is slowing, although it is proving more resilient than was expected at the time of the October Monetary Policy Report (MPR). In the United States, the economy is weakening but consumption continues to be solid and the labour market remains overheated. The gradual easing of global supply bottlenecks continues, although further progress could be disrupted by geopolitical events. In Canada, GDP growth in the third quarter was stronger than expected, and the economy continued to operate in excess demand. Canada’s labour market remains tight, with unemployment near historic lows. While commodity exports have been strong, there is growing evidence that tighter monetary policy is restraining domestic demand: consumption moderated in the third quarter, and housing market activity continues to decline. Overall, the data since the October MPR support the Bank’s outlook that growth will essentially stall through the end of this year and the first half of next year. CPI inflation remained at 6.9% in October, wit tweet at 10:00am: BOC Hikes 50bps to 4.25% *BOC 'CONSIDERING' NEED FOR FURTHER HIKES TO CURB INFLATION tweet at 10:01am: BOC REMOVES LANGUAGE INDICATING THAT THE POLICY RATE WILL NEED TO BE RAISED FURTHER. tweet at 10:03am: *BOC SEES GROWING EVIDENCE HIKES ARE RESTRAINING DOMESTIC DEMAND *CANADA'S ECONOMY LIKELY TO STALL THROUGH FIRST HALF 2023: BOC *BOC: Labor Market Remains Tight tweet at 10:04am: BOC: INFLATION REMAINS EXCESSIVE, AND SHORT-TERM INFLATION EXPECTATIONS REMAIN ELEVATED.

tweet at 10:09am: PUTIN: THREAT OF NUCLEAR WAR IS ON THE RISE tweet at 10:10am: PUTIN: RUSSIA CONSIDERS NUCLEAR WEAPONS A RESPONSE TO AN ATTACK tweet at 10:12am: PUTIN: WE DIDN'T SPEAK ABOUT USAGE OF NUCLEAR WEAPONS tweet at 10:13am: PUTIN: WE HAVE MOST ADVANCED WEAPONS, BUT DO NOT WANT TO WAVE IT AROUNDPUTIN: RUSSIA CONSIDERS SUCH WEAPONS AS DETERRENT