Bank of Canada Officials Split About How Soon Rate Cuts Could Start

Bank of Canada Officials Split About How Soon Rate Cuts Could Start By Hardika Singh

Canada's central bank left its main interest rate unchanged at 5%. Meanwhile, Bank Indonesia unexpectedly lifted interest rates in a bid to bolster its tumbling currency. And the first-quarter results at regional banks show the uneven toll of higher interest rates. Read on for this news and more.

Top News Bank of Canada Officials Split on How Soon Rate Cuts Could Start, Minutes Say

Senior Bank of Canada officials were divided on how soon t he central bank could start cutting interest rates, although they agreed cuts should proceed gradually given the risk of inflation reaccelerating, according to a summary of deliberations leading up to its April 10 policy decision.

Hannon's Take Fed Uncertainty Claims First Central Bank Victim

Indonesia's central bank wasn't expected to raise borrowing costs Wednesday, but it did, thus becoming the first to respond to the changed outlook for U.S. interest rates. It is unlikely to be the last, although for many the response will take the form of an absence of action as planned rate cuts are delayed, or trimmed.

U.S. Economy What the FTC's Ban on Noncompete Clauses Means for You

The Federal Trade Commission on Tuesday banned employers from using noncompete clauses for most workers, which the agency said suppress wages, stall new business formation and stifle companies from hiring the workers they need to grow. Here is what you need to know about noncompete clauses and what to keep in mind before signing.

Financial Regulation Main Street Banking Model Is Being Squeezed

Higher-for-longer interest rates are continuing to weigh on Main Street banks. Regional banks posted steep profit declines in the first quarter and predicted more pain ahead. The results underscore the uneven toll that two years of higher interest rates have taken on regional banks, which tend to have plain-vanilla businesses taking in deposits and making loans. That model has become less profitable because of the pressure to pay up on deposits.

Forward Guidance Thursday (all times ET)

8:30 a.m.: U.S. weekly jobless claims

8:30 a.m.: U.S. GDP, advance estimate for first quarter

8:30 a.m.: Philadelphia Fed Non-Manufacturing Survey

10 a.m.: U.S. pending home sales index for March

Friday

8:30 a.m.: U.S. personal income and outlays for March

10 a.m.: University of Michigan consumer survey for April, final

Research Canada Faces Big Task in Returning GDP Per Capita to Trend

GDP per capita in Canada needs to grow an average 1.7% a year to return to its prepandemic trend over the next decade, a new study by Statistics Canada shows. With population growth outpacing economic growth, GDP per capita is now 2.5% below prepandemic levels and 7% beneath the long-term trend. The study notes structural trends in the labor market related to work intensity and population aging suggest productivity will remain the key driver of GDP per capita in the post-pandemic era, and improvements will require sustained capital spending increases. However, investment per worker in business-sector industries as of 2021 was about 15% lower than in 2006, in part thanks to weaker competition following the mid-2000s. - Robb Stewart

Basis Points The Biden administration will require airlines to automatically provide cash refunds when flights are canceled and to disclose fees like checked bag costs earlier in the booking process under two new rules finalized Wednesday. - Alison Sider The Justice Department is conducting a criminal investigation into consulting firm McKinsey related to its past role in advising some of the nation's largest opioid manufacturers on how to boost sales. - Alexander Gladstone South Korea's economy grew at a stronger-than-expected pace in the first quarter on improving private consumption, construction increases and steady exports. - Kwanwoo Jun German consumer confidence rose to its highest level since May 2022 , suggesting the country's economy may have turned a corner, following similar more upbeat sentiment among businesses published earlier this week. - Ed Frankl About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Hardika Singh in New York. Send your tips, suggestions and feedback to [[e-mail]].

This article is a text version of a Wall Street Journal newsletter published earlier today.

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04-25-24 0715ET