(Reporter Yu Ruidong) On October 25th, the Central Bank of Canada announced that, given more obvious signs that its monetary policy is easing spending and easing price pressures, the benchmark interest rate, the overnight lending rate, will continue to be maintained at 5% while maintaining quantitative tightening policies.
The Central Bank of China stated that the global economy is slowing down due to past interest rate hikes and recent pressure on demand from global bond yields. It is expected that the global GDP growth rate this year and the following two years will be 2.9%, 2.3%, and 2.6%, respectively. But potential inflation still persists. The Ukrainian crisis and the new round of Palestinian-Israeli conflict have damaged the global economy and added uncertainty to the outlook.
In Canada, a series of indicators indicate that the supply and demand situation is approaching balance. The Central Bank of China predicts that the economy will enter a state of oversupply this year, and economic growth will remain weak next year. For a period of time, government spending will become an important driving force for economic growth.
In recent months, the Canadian Consumer Price Index (CPI) has experienced significant fluctuations. However, the Central Bank of Canada has observed that the downward trend of core inflation is still not significant. Canada's year-on-year CPI growth in September this year has dropped from 4.0% last month to 3.8%. The Central Bank of China predicts that by the middle of next year, the average CPI will be around 3.5%, and by 2025, it will gradually decline to 2%.
The Central Bank of China stated that it hopes to see a downward trend in core inflation, but is still concerned about the slow progress in achieving price stability and increasing inflation risks, and is therefore prepared to further raise interest rates if necessary. The next interest rate negotiation date for the Central Bank of China is December 6th.
After the emergence of the COVID-19, the Central Bank of Canada cut interest rates consecutively from March 2020, lowering the benchmark interest rate all the way from 1.75% to 0.25%. Since March last year, the Central Bank of China has raised interest rates multiple times to curb inflation. At present, the country's benchmark interest rate is at its highest level since April 2001.