Question
We are having a group discussion and graded for the quality of post. One of the colleagues mentioned this answer, Please provide a critique on
We are having a group discussion and graded for the quality of post. One of the colleagues mentioned this answer, Please provide a critique on this post. Please include citations in APA format and no plagiarism.
Question: Choose a recent economic report published on BNN Bloomberg Economics. The report can be related to inflation, monetary policy, banking regulations, real estate, investment, and savings.
Hello everyone,
According to a report published on BNN Bloomberg Economics, the Bank of Canada will make its second-last interest rate decision of 2023 at itsOctober 25, decision (Fleguel,2023). The expectation of outcomes as noted by economists surveyed reflects mixed signals of the economy. On the one hand, recent data suggest the economy is softening while underlying inflation pressures continue to run well above the two per cent inflation target. Then again, results from the Central Bank business outlook survey suggest that price growth will continue to decelerate (Fleguel,2023). Therefore, deceleration in price growth refers to situations where the rate of interest in prices of goods and services slows down over time. For instance, the Consumer Price Index (CPI) rose by 3.8% on a year-over-year basis in September 2023, down from a 4.0% gain in August 2023(Government of Canada,2023).
Furthermore, the Central Bank of Canada as mandated by the Bank of Canada Act is expected to regulate credit and currency in the best interest of the economic life of the nation and to mitigate by its influence fluctuations in the general level of production, trade, prices, and employment within the scope of the monetary action (Parkin & Bade, 2021). As noted in the BBN article, the Bank of Canada opted to forego an interest rate hike in September to prevent excessive swings in inflation(Fleguel,2023). Therefore, the goalof the Bank is to commit to an explicit inflation targeting which is set at a midpoint of 1 to 3 per cent inflation control range which is focused on maintaining price stability also believed to support economic growth (Team, 2023).
Yet, the factors that influence the Bank of Canada's interest rate decisions include the money supply, the rate of inflation, the Bank of Canada monetary policy, the target for the overnight rate, and the cost of funds in financial markets, among others (Canadian Bankers Association,2021).
References:
Fleguel, J. (2023, October 20). What are economists expecting from Wednesday's rate decision? - BNN Bloomberg. BNN. https://www.bnnbloomberg.ca/what-are-economists-expecting-from-next-week-s-rate-decision-1.1987493
Government of Canada, S. C. (2023, October 17). Consumer price index, September 2023. The Daily-. https://www150.statcan.gc.ca/n1/daily-quotidien/231017/dq231017a-eng.htm
Parkin, M., & Bade, R. (2021). Macroeconomics: Canada in the global environment. https://www.pearson.com/en-ca/subject-catalog/p/macroeconomics-canada-in-the-global-environment/P200000002666/9780136690931
Team, T. I. (2023, June 30). What is inflation targeting, and how does it work?Investopedia. https://www.investopedia.com/terms/i/inflation_targeting.asp
Canadian Bankers Association. (2021, March 31). Understanding interest rates | Understanding interest rates. https://cba.ca/understanding-interest-rates
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