Rush for US Dollars May Be Around the Corner, Mizuho Says

This summary reflects discussions and deliberations by members of Governing Council in stage three of the Bank’s monetary policy decision-making process. This stage takes place after members have received all staff briefings and recommendations. Governing Council’s policy decision-making meetings began on April 2. The Governor presided over these meetings. Members in attendance were Governor Tiff Macklem, Senior Deputy Governor Carolyn Rogers and Deputy Governors Toni Gravelle, Sharon Kozicki, Nicolas Vincent and Rhys Mendes. Governing Council began its deliberations by discussing the outlook for the global economy. Growth was projected to be stronger than previously expected in 2024 and 2025. The US economy accounts for a substantial portion of the increase. Growth in the euro area had remained weak but was expected to pick up gradually this year. China’s economy was expected to face headwinds due to subdued consumer confidence and continued weakness in the property sector. Governing Council members expected inflation to continue to ease gradually in most major economies, although with some unevenness across countries. post: BOC MINUTES: AHEAD OF THE APRIL 10TH RATE ANNOUNCEMENT, THE GOVERNING COUNCIL AGREED THAT ANY MONETARY POLICY EASING WOULD PROBABLY BE GRADUAL. post: BOC MINUTES: THERE WERE DIFFERENT VIEWS ON HOW MUCH MORE ASSURANCE WAS NEEDED TO BE CONFIDENT THAT INFLATION WAS ON A SUSTAINABLE PATH BACK TO THE 2% TARGET. post: BOC MINUTES: SOME MEMBERS FELT THERE WAS A RISK OF KEEPING MONETARY POLICY MORE RESTRICTIVE THAN NEEDED, GIVEN THE DECLINE IN INFLATION.