Canada’s main stock index ended down along with U.S. markets as central bank leaders emphasize the need to raise rates, while oil prices and energy stocks rose in reaction to news of production cuts by OPEC plus.
The Bank of Canada’s governor Tiff Macklem held the line on rate hikes in a speech Thursday, saying more rate hikes are still needed to cool inflation, despite signs the market has been cooling in response to a series of aggressive hikes by the central bank.
Macklem’s speech didn’t come as a surprise, said Greg Taylor, chief investment officer at Purpose Investments, but it remains to be seen whether the bank follows through.
But the biggest question of all is what the Fed will announce later in the quarter when it comes to interest rates, he said.
“The Fed has made two mistakes. First, they waited too long to start hiking, and then when they started hiking, they went probably…