Bank of Canada Warns of 'Shocks' as Price Growth Slows

The Bank of Canada ended the year warning that it’s prepared to respond if new shocks emerge — a notable shift in language from a central bank that usually chooses its words very carefully. That warning came even as inflation eased again in November, with headline CPI sitting just above the 2% target. #bankofcanada #canadianeconomy #canadianinflation Links: Interest rate announcement / Annonce du taux directeur : https://www.youtube.com/watch?v=zRHcXuvVqjQ&t=7s Bank of Canada: Transparency w/o Scrutiny: https://youtu.be/QBsnHg-MxSs Financial Stability Report - December 2025: https://www.bankofengland.co.uk/financial-stability-report/2025/december-2025 Bank of Canada maintains policy rate at 2¼%: https://www.bankofcanada.ca/2025/12/fad-press-release-2025-12-10/ Food prices rise at fastest pace in two years, though inflation rate holds steady: https://financialpost.com/news/economy/canada-inflation-steady-core-readings-cool Consumer Price Index, November 2025: https://www150.statcan.gc.ca/n1/daily-quotidien/251215/dq251215a-eng.htm?indid=3665-1&indgeo=0 Beware of the Unwinding Japanese Carry Trade: https://www.aei.org/economics/beware-of-the-unwinding-japanese-carry-trade/ Exclusive: BOJ to pledge more rate hikes at next week's policy meeting, sources say: https://www.reuters.com/world/asia-pacific/boj-pledge-more-rate-hikes-next-weeks-policy-meeting-sources-say-2025-12-12/ Japan 10 Year Treasury: https://www.cnbc.com/quotes/JP10Y-JP Financial Stability Report—2025: https://www.bankofcanada.ca/2025/05/financial-stability-report-2025/ How Japan broke the world’s favorite free lunch: https://www.tradingview.com/news/invezz%3Af6458a577094b%3A0-how-japan-broke-the-world-s-favorite-free-lunch/ Federal Surplus or Deficit [-] as Percent of Gross Domestic Product (FYFSGDA188S): https://fred.stlouisfed.org/series/FYFSGDA188S How Debt, Inflation and Politics Are Driving Up Borrowing Costs: https://www.bloomberg.com/news/articles/2025-12-13/long-dated-bonds-selloff-why-governments-face-higher-borrowing-costs U.S. 10 Year Treasury Note: https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx The Fed Is Buying Treasurys Again. Just Don’t Call It Quantitative Easing.: https://www.wsj.com/articles/the-fed-is-buying-bonds-again-just-dont-call-it-quantitative-easing-11571218200 Bank of Canada announces restart of Government of Canada treasury bill purchases: https://www.bankofcanada.ca/2025/11/bank-canada-announces-restart-government-canada-treasury-bill-purchases/ The Fed Is Buying Billions in T-Bills. Just Don’t Call It QE.: https://www.barrons.com/articles/fed-treasury-bills-quantitative-easing-deficit-9c6fd7ec The Fed Is Buying Treasurys Again. Just Don’t Call It Quantitative Easing.: https://www.wsj.com/articles/the-fed-is-buying-bonds-again-just-dont-call-it-quantitative-easing-11571218200 Anatomy of the Repo Rate Spikes in September 2019: https://www.financialresearch.gov/working-papers/files/OFRwp-23-04_anatomy-of-the-repo-rate-spikes-in-september-2019.pdf Bank of Canada assets and liabilities: Weekly (formerly B2): https://www.bankofcanada.ca/rates/banking-and-financial-statistics/bank-of-canada-assets-and-liabilities-weekly-formerly-b2/ Liabilities and Capital: Other Factors Draining Reserve Balances: Reserve Balances with Federal Reserve Banks: Wednesday Level (WRBWFRBL): https://fred.stlouisfed.org/series/WRBWFRBL Fed to launch $40bn debt-buying scheme after money market strains: https://www.ft.com/content/6a04be70-6d05-4f03-b4c7-39ceae52bb64 IMF says global public debt to top $100 trillion, growth may accelerate: https://www.reuters.com/business/finance/imf-says-global-public-debt-top-100-trillion-growth-may-accelerate-2024-10-15/ Mark Mitchell – Mortgage Broker London Ontario 920 Commissioners road east London, Ontario N5Z 3J1 Phone: (519)860-2102 (Call or Text) MarkMitchell@LondonOntarioMortgages.ca Brokerage Lic: 10464 Broker Lic: M16001479 https://www.LondonOntarioMortgages.ca – Apply Online!! Youtube Channel: https://www.youtube.com/c/MarkMitchellMortgageBrokerLondonOntario Subscribe NOW for more Mortgage/Financial News/Videos. Follow me on Social Media: Instagram - https://www.instagram.com/mortgagebrokerlondonontario Facebook - https://www.facebook.com/londonontariomortgages Twitter - https://twitter.com/londonmortgage1/ LinkedIn - https://www.linkedin.com/in/mark-mitchell-london-s-mortgage-broker-197842123/ TikTok - https://www.tiktok.com/@mortgagebrokerlondon?lang=en Commentary on this Channel should not be considered financial advice