The Bank of Canada on Wednesday kept its key interest rate steady but sharply raised its outlook for the economy, saying it now expects slack to be absorbed in the second half of 2022, increasing the likelihood of a hike in borrowing costs next year.
The U.S. dollar rose on Wednesday from a seven-week low hit overnight, as
broad weakness in stock markets triggered by a resurgence of COVID-19 cases in India and Japan encouraged a
retreat to the ...
Canada's annual inflation rate doubled to 2.2% in March, Statistics Canada said on Wednesday, as the central bank signaled economic slack would likely be absorbed earlier than it had previously forecast. Previously, the Bank of Canada had said it would be 2023 before inflation returned sustainably to its 2% target.
The Baltic Exchange's main sea freight index surged to its highest in over a decade on Wednesday, powered by a jump in the larger capesize vessel segment on increasing iron ore shipments from Brazil. * The Baltic dry index, which tracks rates for capesize, panamax and supramax vessel ferrying dry bulk commodities, jumped 238 points, or 9.6%, to 2,710, its highest since October 2010.
Canada's annual inflation rate accelerated to 2.2% in March, up from a year-over-year increase of 1.1% in February, on energy prices and due to a statistical effect caused by last year's very low index level, Statistics Canada said on Wednesday. Analysts polled by Reuters had expected the annual rate to rise to 2.3% in March.
Russian financial authorities must maintain macroeconomic stability and restrain inflation, President Vladimir Putin said on Wednesday, days before the central bank meets for the key rate decision.
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E. The U.S. dollar rose on Wednesday from a seven-week low hit overnight, as broad weakness in stock markets triggered by a resurgence of COVID-19 cases in countries from India to Japan fuelled renewed appetite for the safe-haven appeal of the greenback.
Turkish President Tayyip Erdogan said on Wednesday that an opposition political campaign inquiring over the sale of some $128 billion in the central bank's foreign reserves was "outright treason against the people of Turkey."
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh. * Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv. By Julien Ponthus. Sterling held its ground against the dollar on Wednesday as traders assumed a rise in inflation in March would have little impact on monetary policy and waited for crucial activity and retail sales data due at the end of the week.
British inflation picked up in March as global oil prices rose and COVID-driven discounts on clothing were lifted, it is expected to carry on climbing as the economy re-opens from lockdown. Consumer price inflation rose to 0.7% in March from 0.4% in February, just below the average forecast of 0.8% in a Reuters poll of economists, according to official figures published on Wednesday.
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