Skip to main content

Featured

Missile Fire from Yemen's Houthi Rebels Triggers Sirens in Central Israel for the Second Night

  For the second consecutive night, air raid sirens blared across central Israel as a missile launched from Yemen's Houthi rebels was intercepted by Israeli air defenses early Wednesday morning. The missile, aimed at the Tel Aviv area, was successfully intercepted before crossing into Israeli territory, though shrapnel from the interception fell in several towns.  This marks the fourth time in a week that missile fire from the Houthi rebels has set off sirens in Israel. On Saturday, a missile hit a playground in Tel Aviv, injuring 16 people after Israel's air defense system failed to intercept it. In response, Israeli jets struck Yemen's rebel-held capital and a port city, resulting in nine casualties.  Israel's foreign minister has requested an emergency meeting of the U.N. Security Council to condemn the Houthi attacks and their alleged Iranian allies for providing the rebels with weapons. The situation remains tense as both sides continue to exchange fire, with the H...
Post a Comment
Read more
Labels

Bank of Canada Expected to Maintain Rates This Week, with First Cut Anticipated in June

 

The Bank of Canada is poised to keep its key overnight rate unchanged this week, as it continues to assess cooling inflation trends. However, the prospect of its first interest rate cut in four years looms on the horizon, with market speculation suggesting it could arrive as early as June.

Canada’s inflation, including core measures tracked by the central bank, has eased from a peak of 8.1% in June 2022. Additionally, the recent labor force survey revealed weaknesses in the job market. Despite these indicators, the central bank faces a delicate balancing act. While a rate cut could further stimulate consumer spending, it also risks fueling a rally in housing prices—a critical component that has driven inflation in the country.

An immigration-driven population surge has led to an unprecedented housing shortage in Canada. First-time home buyers and renters eagerly await opportunities to enter the market as borrowing costs decline from a 22-year peak. The central bank’s decision will significantly impact these dynamics.

Money markets have been increasingly betting on a 25 basis-point rate cut in June, with the current chances hovering around 78%. A rate cut in July is fully priced in, while April is expected to be a hold by the bank. Economists are aligned with market expectations, with over 70% anticipating the Bank of Canada’s first rate cut in June.

Governor Tiff Macklem has emphasized the need for caution. While the central bank aims to keep inflation within its 2% target range, Macklem has stated that it is still too early to consider a rate cut. The bank awaits further signs of underlying easing inflation before making any decisive moves.

In summary, the Bank of Canada’s upcoming monetary policy decision on April 10 will be closely watched. As the economy navigates uncertainties, the timing of the first rate cut remains a pivotal question. Whether it occurs in June or July, the central bank’s actions will shape Canada’s economic landscape in the coming months.



.

Labels:

Comments

Post a Comment