Bank of Canada MPR highlights: Sees 2023 GDP at +0.9% vs +1.8% in July

The BOC is out with a new Monetary Policy Report, which updates forecasts that were made in July.

• 2022 GDP seen at 3.3% vs 3.5% prior
• 2023 GDP seen at 0.9% vs 1.8% prior
• 2024 GDP seen at 2.0% vs 2.4% prior

Inflation:

• 2022 CPI seen at 6.9% vs 7.2% prior
• 2023 CPI seen at 4.1% vs 4.6% prior
• 2024 CPI seen at 2.2% vs 2.3% prior

Other highlights:

• Output gap in Q3 shrank to beween 0.25% an d 1.25% from 0.50% and 1.50% in Q2
• Slowdown in economic activity abroad, especially in the United States, is starting to weigh on exports thought recent CAD CAD The Canadian dollar (CAD) is the official currency of Canada and at the time of writing is the fifth most-held reserve currency in the world behind only the US dollar, euro, Japanese yen, and British pound.The CAD is commonly referred to as the Loonie by forex analysts and traders. At the time of writing, the CAD accounts for 2% of all global currency reserves.Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty, and historic stability.Originally i The Canadian dollar (CAD) is the official currency of Canada and at the time of writing is the fifth most-held reserve currency in the world behind only the US dollar, euro, Japanese yen, and British pound.The CAD is commonly referred to as the Loonie by forex analysts and traders. At the time of writing, the CAD accounts for 2% of all global currency reserves.Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty, and historic stability.Originally i Read this Term depreciation partially offsets this
• High energy costs seem to have passed through to inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term much more than usually, it will take time for these impacts to recede
• Global growth seen at 1.6% in 2023
• Bank views risis around inflation outlook as roughly balanced but upside risk is of greater concern due to persistently high inflation
• Inflation seen returning to 2% target around end of 2024
• A couple of quarters with growth slightly below zero is just as likely as a couple of quarters with small positive growth

Global growth forecasts: