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Canadian Imperial Bank of Commerce (CIBC)
Symbol CM
Shares Issued 904,884,760
Close 2022-10-26 C$ 60.81
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Globe says BMO, rivals hear inflation fight nearing end

2022-10-27 08:23 ET - In the News

See In the News (C-BMO) Bank of Montreal

The Globe and Mail reports in its Thursday, Oct. 27, edition that the Bank of Canada boosted borrowing costs again on Wednesday. The Globe's Mark Rendell writes that Governor Tiff Macklem told a news conference that further rate hikes are needed to get inflation, currently running near a four-decade high, under control. At the same time, he said, the bank needs to be more cautious about risks to the economy from higher interest rates, with growth expected to "stall" in the coming quarters. Mr. Macklem said: "We are trying to balance the risks of under tightening and over tightening. If we don't do enough, Canadians will continue to endure the hardship of high inflation. ... If we do too much, we could slow the economy more than needed." The Globe notes that this marks a notable shift in tone and strategy. The BOC has argued that the first inflation shock in a generation has to be met with an overwhelming response. The BOC's goal is to curb demand for goods and services, and slow down the speed of price increases. BMO's Benjamin Reitzes said in a note to clients that the BOC is trying to achieve a fine balance, "threading the needle of taming inflation while not putting too much pressure on the economy."

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