BoC's Rogers: We need higher rates to moderate demand

Ross J Burland FXStreet

The Bank of Canada Governor Senior Deputy Governor Carolyn Rogers says the labour market is a really strong indicator right now of excess demand in the Canadian economy.

Key comments

We don't target components of inflation, we target the overall level of inflation.

We need higher rates to moderate demand including demand in the housing market.

Housing price growth is unsustainably strong in Canada, it would not be a bad thing for the economy for the growth in housing prices to moderate a bit.

We do expect that housing price growth will moderate as rates go up.

We think the technology that underlines digital currencies has some potential.

It's completely realistic that Canadians are going to want a digital Canadian dollar at some point.

Meanwhile, USD/CAD has been consolidating in bullish territory but is down by some 0.28% at the time of writing, moving sideways within a 1.2825/93 range on Tuesday.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.