CIBC's Stretch Says BOE Hike in November too Aggressive

The video discusses the likelihood of a rate hike in November, contrasting it with February expectations. It highlights the differences between economists and money markets, emphasizing the need to focus on data and fundamentals. The discussion covers the erosion of spare capacity, sub-trend growth rates, and the squeeze on real earnings. It also examines consumer spending, retail sales, and their potential impact on rate expectations, noting the resilience of consumers despite rising food prices.

What is the current market pricing for a rate hike in November?

• 30% chance

• 70% chance

• 90% chance

• 50% chance

What is the growth rate mentioned in the discussion?

• 0.3% to 0.4%

• 1.0%

• 0.7%

• 0.5%

What is the central bank's focus according to the discussion?

• Political stability

• International trade

• Data and fundamentals

• Public opinion

What factor is impacting discretionary spending according to the discussion?

• Increase in wages

• Decrease in taxes

• Rise in food prices

• Lower interest rates

What was the consumer behavior surprise mentioned for the last year?

• Increase in savings

• Resilience by drawing down savings

• Decrease in consumption

• Increase in borrowing