Bank of Canada Raises Rates Less Than Expected

The Bank of Canada raised interest rates by 50 basis points, less than the expected 75. This decision reflects the bank's struggle with high inflation and a slowing economy. Experts Warren Levely and Diana Avigdor discuss the implications, noting the potential for a technical recession and the impact on financial markets. The bank maintains a hawkish stance, indicating further rate hikes may be necessary. The discussion also covers market expectations and the need for central banks to shift from reactive to proactive strategies.

What was the actual rate increase announced by the Bank of Canada?

• 75 basis points

• 100 basis points

• 50 basis points

• 25 basis points

What was the expected rate increase by the Bank of Canada?

• 25 basis points

• 100 basis points

• 75 basis points

• 50 basis points

What conflicting forces is the Bank of Canada dealing with according to Warren Levely?

• Slowing economy and high inflation

• Rapid economic growth and low inflation

• High inflation and rapid economic growth

• Low inflation and economic stability

What does the Bank of Canada say about the likelihood of a technical recession?

• It is less likely than small growth

• It is more likely than small growth

• It is just as likely as small growth

• It is unlikely to happen

What does Diana Avigdor suggest about central banks' strategies?

• They should stop adjusting rates

• They should become more proactive

• They should continue being reactive

• They should focus only on inflation