Can the Bank of Canada Stop Interest Rates?

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The Bank of Canada is the first major G10 economy to halt its rate increases. Claire Jones says this might give us a sense of what's to come later this year. Overall, I think global central banks are facing a broadly similar set of circumstances.

Tesla reported record revenues last quarter, the Bank of Canada signalled it would pause interest rate rises, and trillions of dollars each day are gushing into a US Federal Reserve facility designed to mop up excess cash in the financial system.

Mentioned in this podcast:

Tesla aims to build 1.8mn cars this year but warns of challenges

US economic growth set to have slowed in fourth quarter of 2022

Investors pump trillions of dollars a day into ultra-safe Fed facility

Bank of Canada signals likely pause in tightening after latest interest rate rise

Central banks should sacrifice ambitions of a perfect economic landing

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