Restrictive Monetary Policy Impact On US GDP

Wednesday, 24 Jan, 17:00 – CA BoC Interest Rate Decision

In the previous month, the Bank of Canada (BoC) chose to keep its key interest rate at 5% for the third consecutive decision, in line with widespread expectations. The BoC expressed ongoing concerns about inflation risks but stopped short of explicitly stating that these risks are on the rise.

Thursday, 24 Jan,15:15 – ECB Interest Rate Decision 

In the most recent interest rate announcement, the Governing Council of the European Central Bank (ECB) kept the existing key interest rates unchanged, maintaining the main refinancing operations at 4.50%. The ECB noted in its announcement that, despite recent declines in inflation, a temporary upswing is anticipated in the near future.

Friday, 25 Jan,15:30 – US GDP (QoQ) (Q4)

The growth of the U.S. GDP in the third quarter of 2023 has been recorded at a rate of 4.9 percent. The increase in real GDP was propelled by rises in consumer spending, private inventory investment, and exports. Some economists anticipate that GDP growth will likely be below the trend due to the restrictive stance of monetary policy.