Jan 26, 2022 | Notes from the Desk
Canadian Inflation · Headline CPI came in as expected at 4.7%, while core inflation was 1.8% (a touch below the expectation of 1.9%) · With the Bank of Canada forecast of 4.8% for Q4, today’s numbers should do little to ease concerns over inflation nor should it stoke...Jan 26, 2022 | Notes from the Desk
Today’s FOMC was a relatively straightforward, as-expected affair. · The tapering of QE begins this month with a reduction of $15 bn per month ($10 bn in treasuries, $5 bn in mortgages) · At this pace, QE will be done in mid-June, which sets the stage for rate hikes...Jan 26, 2022 | Notes from the Desk
A quick note from our trading desk on today’s Bank of Canada meeting and press conference. · The BoC has officially ended QE and moved into the reinvestment phase, where they will simply reinvest maturing bonds. They expect to be in this reinvestment phase until...Jan 26, 2022 | Notes from the Desk
Federal Reserve Chairman Jay Powell has achieved an amazing outcome. His highly anticipated speech this morning was a masterpiece of optimism and calmness. · Tapering is expected later this year, with the exact timing dependent on the impact of delta. No panic in...Jan 26, 2022 | Notes from the Desk
The Federal Reserve really knows how to thread the needle, having dropped hints about tapering without freaking-out the markets. The As Expecteds. · No change to the overnight rate · Still hold that the recent bout of high inflation is transitory · Quantitative easing...Jan 26, 2022 | Notes from the Desk
Despite well telegraphed signals, the Bank of Canada (BoC) managed to surprise markets with their announcement today. The As Expecteds. No change to the overnight rate The BoC announced a taper in their bond buying from $4bn to $3bn a week. No specific details on how...
