Larger-than-expected interest rate hikes would lead to economic contraction: PBO

The PBO published a report Thursday that assesses what would happen if the Bank of Canada and U.S. Federal Reserve raise interest rates by one percentage point more than anticipated.Sign up to receive daily headline news from the Calgary SUN, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails.

The PBO says the unemployment rate would rise to 6.2 per cent by early 2024, half a percentage point higher than it is expecting in the baseline scenario. Lower economic activity and higher interest rates would also mean the federal deficit would grow to $42.9 billion in the 2023-24 fiscal year and $36.5 billion in the 2024-25 fiscal year.

The PBO says this analysis represents only one of many possible scenarios that could play out in the Canadian economy.

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Larger-than-expected interest rate hikes would lead to economic contraction: PBOThe parliamentary budget officer says the economy would contract in 2023 if central banks raise interest rates more than anticipated. ‘Contraction’ (sounds mild). What a genius. who's providing the expectations.
Source: TheTorontoSun - 🏆 23. / 68 Read more »

Larger-than-expected interest rate hikes would lead to economic contraction: PBOThe parliamentary budget officer says the economy would contract in 2023 if central banks raise interest rates more than anticipated.
Source: ottawasuncom - 🏆 4. / 92 Read more »