| Bank of Canada hits pause while the U.S. Fed continues hikes | The Bank of Canada (BoC) paused interest rate increases in March, keeping its benchmark overnight rate at 4.5%. The widely expected move made it the first major central bank to pause rates.The U.S. Federal Reserve Board (Fed) lifted its federal funds rate by 25 basis points (bps), expressing concern over troubles in the banking sector. Meanwhile, the European Central Bank and Bank of England raised rates by 50 bps and 25 bps, respectively.
There was some good news for Europe over the month. The region saw expanded activity in its services sector, an improving real estate market and indications that the financial sector is strong despite concerns with banks. In our analysis this month, we take a closer look at how the global banking sector came under pressure, such as the collapse of Silicon Valley Bank, a U.S. regional bank with strong ties to venture capital and the technology sector. | Read the full market commentary on canadalifeinvest.ca including the following topics:
- Global banking sector under pressure
- The BoC pauses, others keep going
- Europe’s services sector boosting economy
- Oil prices drop in March but surprise production cuts on the horizon
| | | | | For the latest news and insights, check out canadalifeinvest.ca | | | Register now for the next Canada Life Portfolio Manager Series event on April 13 at 1 p.m. ET, featuring the Mackenzie Investments Fixed Income Team. |
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