Interest rates go higher

Author

Jay Lutz
June 07, 2023

Tiff raises rates again

Against expectations, Bank of Canada governor Tiff Macklem raised borrowing costs on Wednesday by another 25 basis-points, bringing the overnight rate from 4.5% to 4.75%.

Although policy makers acknowledged consumer prices are declining in line with lower global energy prices, they pointed to a stubbornly high core inflation rate as the main reasoning to continue their resolve towards price stability. Meanwhile, the Canadian economy has shown unexpected strength in the first three months of 2023, with a GDP growth rate of 3.1%. This growth is largely due to strong and wide-ranging consumption, even after adjusting for population increases.

Demand for services is rebounding, spending on interest-sensitive goods is rising, and there is a resurgence in housing market activity. The labor market remains tight, with high immigration and participation rates contributing to an expanded labor supply. However, new entrants to the job market are being rapidly employed, demonstrating the continued high demand for labor.

“Overall, excess demand in the economy looks to be more persistent than anticipated,” the Bank of Canada wrote in a statement.

You can read more on the matter here.

HydroGraph Clean Power was founded to fund and commercialize green, cost-effective processes to manufacture high-purity graphene, hydrogen and other strategic materials in bulk. Publicly listed on the Canadian Securities Exchange in December 2021, the Company acquired the exclusive license from Kansas State University to produce both graphene and hydrogen through their patented detonation process.

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Chile’s lithium nationalization

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FULL DISCLOSURE: HydroGraph Clean Power is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of HydroGraph Clean Power. The author has been compensated to cover HydroGraph Clean Power on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.