Canada: Growth may be on the cold side, but inflation temperature is just right - CIBC

Andrew Grantham, analysts at CIBC, explained that they don’t expected the Bank of Canada to cut rates as markets have been pricing, following today’s  |  15/05/2019 20:26

Andrew Grantham, analysts at CIBC, explained that they don’t expected the Bank of Canada to cut rates as markets have been pricing, following today’s Canadian CPI data. 

Key Quotes

“Headline CPI rose by an on-target and on-consensus 2% year-over-year in April, with the average of the BoC’s core measures only a tick weaker at 1.9%. While inflation could be a little above target in the months ahead, and more so again toward year-end, that will be largely an energy story and as such of little concern for policymakers. With inflation neither too hot nor too cold, the Bank of Canada can concentrate on the growth numbers in determining any future moves in interest rates.”

“With inflation neither too hot nor too cold, the Bank of Canada can focus on indicators of growth in judging what, if any, adjustments have to be made to interest rates. With strength in the labour market and a March rebound in exports suggesting a pick-up in growth in the second quarter, we don’t expect that the Bank of Canada will need to cut interest rates as markets have been pricing. However, economic growth of only 1.5% this year and next, combined with little inflationary pressure, doesn’t necessitate a tightening either.”
 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on finance
and other asset classes for Market Insight viewers

Back

Login to Market Insight Account

Your Market Insight account gives you access to the tools that we offer our customers including our
Technical Studies & Sentiment for your accounts.

Forgot Password?

Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

Create a Market Insight's Account

Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

register_ty

Thank you!

Welcome to Market Insight family!

You have succesfully completed the registration.
We will send you an e-mail to give you some
instructions and our Terms and Conditions!
Our account representatives will be contacting you as
soon as possible. If you have any further questions
please do not hesitate to mail us via info@marketinsight.com